The rate cut emphasises GE Life’s complete commitment to this market and follows other recent initiatives to provide a better deal for consumers, such as the publication of its ‘Family Guide to Equity Release.’ *
In addition to the new rate, GE Life is set to reinstate its highly popular cash back facility, whereby all customers, irrespective of the size of the loan, or who their financial adviser is, will receive a £250 tax-free cashback on completion of their Equity Release Lifetime Mortgage.
The interest rate on GE Life’s Equity Release Lifetime Mortgage is compounded annually, making the product transparent and easy to understand. This addresses one of the FSA’s key concerns from its recent mystery shopper report, which highlighted that consumers were not receiving the best value.
Simon Little, marketing and product manager for GE Life said, ‘This is an exciting yet challenging time for advisers, providers and everyone involved in equity release. Our ‘State of Retirement Report’ found that nearly one in four (39%) of those five years from their retirement would consider releasing equity from their home, showing the potentially huge market that is out there. However we must be careful to treat customers fairly and to offer them the best service and products possible. At GE Life we believe in very high standards of practice and sympathise with the findings of the FSA’s recent mystery shopper report.’
Little continued; We feel we have the capacity to lower our rates once again and provide even better value for equity release customers – especially for those consumers on the verge of considering equity release, so they can see that such products represent value for money.’
GE Life’s Equity Release Lifetime Mortgage, which is available solely through financial advisers, features:
Fixed interest lifetime mortgage with interest compounded annually
No negative equity guarantee
Clear fee structure - no hidden costs
Minimum loan value of £25,000 no maximum
