The scheme has been designed to protect customer’s estates in the event of early death or unusually high house price inflation.
Home reversion plans involve clients selling a percentage of their home for a one-off payment rather than equity release, where money is borrowed against the future sale of the home and where the interest is rolled up over a number of years.
The product’s inheritance protection guarantee is designed to protect the value of the customers estate in the event of death in the plan’s first four years.
The customer can also sell up to 100 per cent of their home and remain living there for the rest of their life.
Mark Kelly, director of Norwich Union Personal Finance, said: “Launching this plan is an important development in the equity release market as there has not been a major product provider in the reversion market for several years.
“Our research shows that some customers find a reversion plan to be a simpler proposition that might be more suitable for their needs than a lifetime mortgage. This is particularly the case if customers want to guarantee an inheritance.”
Dean Mirfin, business development director at equity release and home reversion specialist broker Key Retirement Solutions, commented: “This is very good news for reversions, having a big name involved in the home reversion market will boost the whole sector.
“With the new features added to this product home reversion schemes will become a real option for some people.”
The scheme is only available for clients between the ages of 65 and 80 as Norwich Union believes those who fall out of the age range risk not getting best value from the product.
