The key features of the lifetime mortgage include a rate of 6.65 per cent fixed for the life of the loan, lump sum release, a no negative equity guarantee, ‘competitive’ LTVs across all age bands and portability within criteria.
Bristol & West has also signed up as a member of Safe Home Income Plans (SHIP).
Dominic Toller, head of marketing at Bristol & West Mortgages, said: “We have recognised the clear need in the market and we have developed a competitive product designed to meet the changing needs of intermediaries and their clients.
“We believe we have a strong product and will become a top four supplier of equity release within the next year.”
But Jonathan Wilkey of Gwyn James Solicitors warned that intermediaries were failing to give proper advice on these products. “The duty of the adviser is to advise on the nature, affect and implications of these plans,” he said.
“But we have seen that in some cases these products are not being backed up by sound financial advice. The problem is distinguishing where the broker’s advice stops and the solicitor’s advice starts, and vice versa.”
Dean Mirfin, business development director at Key Retirement Solutions, commented: “Our research has shown 99 per cent of customers did not regret taking out an equity release product and suggests that the sales process was carried out carefully over time.
“And 82 per cent of the respondents involved their children in the process and told them of their intentions. We did not expect it to be this high.”
