N&P to offer equity release plans
Following a pilot scheme, Norwich and Peterborough Building Society is making a Norwich Union equity release plan available through all its branches.
Unlike some other plans offered in the market in the past, the Norwich Union plan has a "no negative equity guarantee" to ensure that neither the customer, nor their estate, will ever be left with a debt from the sale of the property as a result of taking out a plan.
The timely roll-out comes just after research was published last month by the Coucil of Mortgage Lenders (CML). The research called for "safe, simple and standardised products that would allow older people to draw on the wealth in their homes to provide an income while continuing to enjoy security in old age."
The NU Equity Release Plans will provide N&P customers with a choice as to how they release some of the cash tied up in their homes. They can choose to receive a lump sum, a regular income for life or combination of both. Not a penny has to be repaid until the property is sold (upon the customer’s death or going into long-term care).
