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Rock and Age Concern link lowers the limit for release

Age Concern is teaming up with Northern Rock to offer an equity-release product for the growing at-retirement market.

The Age Concern lifetime mortgage is aiming at the six million homeowners in the UK aged over 60.

The plan offers the option of a one-off lump sum, a monthly cash release or a combination of the two.

One-off sum start from and monthly releases can start at 50. The plan is available on properties valued from 30,000.

The variable rate is 6.94 per cent and tracks the Bank of England base rate. The product is capped at 8.99 per cent for the life of the loan.

The lifetime mortgage has no arrangement fee, no early repayment charges and there is no advice fee.

Age Concern and Nor-thern Rock are encouraging potential customers to consider all options before choosing to release equity from their homes.

The two organisations have published a guide for customers, entitled, Using Your Home to Improve Your Finances, to urge them to discuss all aspects of the plan before making a decision.

Northern Rock development manager Phil Veale says: “The product is being launched in response to the high customer demand we have experienced.

“With those customers in mind, we have thoroughly researched the market and designed our product to suit as many homeowners as possible, reaching much further down the assets scale than traditionally possible.

“It is important that people only release the amount they actually need. This plan allows them to do that.”

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