Nearly half of people aged over 55 would consider a lifetime mortgage
- Tens of millions of pounds worth of illustrations for Pru’s Property Value Release Plan issued by Prudential
- Over 2500 calls from advisers and customers have been received
- Over 3800 info packs have been issued
- Advisers can call 0800 731 5544 or speak to their account manager
- Customers can call 0800 316 9959 for an information pack
Confidence in the market
This comes as new Pru research shows that customer confidence in lifetime mortgages is high – nearly half (44 per cent) of homeowners over 55 would consider a lifetime mortgage now.1 In 2004, only 18 per cent would consider an equity release product,2 and in 2003, this was 9 per cent.3 The figure for lifetime mortgages is higher (at 48 per cent) when you open the question to all age groups.
The fact that lifetime mortgages are now regulated makes 31 per cent of people more likely to consider one. 47 per cent of the population plan to use their home equity to help fund their retirement and 16 per cent of people think it will be the biggest part of their pension provision. 12 per cent think that home equity will make up 50 per cent or more of their retirement income.1
Advisers share this confidence. Since launching the product detail and the illustrations system, the Pru has received a massive amount of interest in the product – over 2500 telephone calls from customers and advisers have been received, and illustrations to the tune of tens of millions of pounds have been issued.
Ali Crossley, Pru’s Director of Lifetime Mortgages, said: “I am very pleased to be opening the product for new business. This has been a very exciting year for us in terms of product development and marketing and I’m delighted that the hard work is paying off. Given the amount of interest already received from advisers and customers, we are convinced that our new Property Property Value Release Plan will be a resounding success.”
What happens next
Applications will be processed from the 17 October. To do this Pru has partnered with Global Home Loans, the UK’s largest third party mortgage administrator. Each application is reviewed, then a valuation arranged. On receipt of valuation results, the application is processed using new case tracking technology, and customers can expect the loan to reach their account within 8 weeks of applying.
Pru’s product
The Prudential Property Value Release Plan has pushed the lifetime mortgage market to the next level of innovation, offering a high degree of flexibility, the option of an increasing loan to value, and the potential savings associated with a flexible loan. At 6.45% (6.64% AER and 6.9% APR),4 it is one of the only flexible products on the market which has no time restrictions on drawdowns, and it has a competitive rate.
Better service for advisers
Pru is committed to offering exemplary service for advisers. Over the last few months, this has involved a number of initiatives:
- The establishment of a new specialist lifetime mortgage team
- Partnership with the UK’s largest third party mortgage administrator, GHL, to ensure smooth and speedy processing
- The introduction of new case tracking technology with automated email updates to advisers
- The launch of the online calculator on www.pruadviser.co.uk to help advisers compare different loan amounts and interest rates.
Special offers for launch
As a special offer to mark the launch, customers who submit application forms before 31 March 2006 will not pay the valuation fee – a saving of approximately £206-£529 depending on the value of the property. This offer may be extended or removed at any time. Commission to advisers will be £400 or 1% of the initial loan advanced (whichever is the greater).
