Ray Boulger, senior technical manager at Charcol, has criticised NU over the way it has implemented the rate change for consumers who have already applied for the product, but whose case would not complete in time.
Boulger said other equity release providers honoured the rate at the date of application. Mortgage Express, for example, allows a six-month period from the initial application for the case to complete.
“I call on the FSA to ensure that lenders maintain the rates they offer clients,” said Boulger.
The FSA said it could not comment on the issue but that clients had to be kept fully informed regarding all rate changes.
Simon Mc Guinness, marketing manager for NU Equity Release, said he expected the majority of applicants to complete before the deadline. “We will also refund any valuation fees for those who do not meet the deadline and decide they want another product,” he commented.
Dean Mirfin, head of marketing at equity release specialists Key Retirement Solutions, said: “To be fair NU are very quick with their processing and I would imagine most cases will complete in time.”
He went on to say it would be better for brokers if NU adopted a similar stance to Mortgage Express.
