The equity release provider has frozen new lending on the the Retirement Plus Open Options Property Plan and the Open Options Impaired Life Property Plan.
Applications cannot be accepted or KFIs generated for new business and it is unable to issue offers on any applications it has been processing. It will honour cases where an offer has been issued to a customer and process it through to completion. It will also refund the valuation fee on any cases submitted but not offered.
Retirement Plus managing director Duncan Young says the home reversion provider has been negotiating its funding line with RBS for a while, and has had to suspend business while those negotiations continue.
Young says: “We didn’t want to stop, but the negotiations have been taking longer than we thought. It’s not the fault of the bank, it’s simply a sign of the times.
“I hope we can secure funding soon. It’s unbelievably irritating as there is so much demand for the products, and sadly all that business is going to flow elsewhere.”