This will increase its fee from 1.5 per cent to 3 per cent.
The company has seen a positive market response to its products and is keen to maintain momentum through the traditionally quieter Christmas and New Year period.
Managing director Duncan Young said: “An increasing number of intermediaries now recognise the value of equity release and the part it plays in financial planning. We are very keen to support this positive trend.”
The Property Plan is a form of home reversion but with some differences: the share of the property bought is at full market value; the share then only increases over time rather than any discount being applied at the start; a share of the property can be protected for the customer to apply to raise funds at a later date or for their family to inherit. The Property Plan can be tailored to changes that occur in the customer’s life.
Young said: “Elderly people in the UK own more in property assets than they do in pensions and savings, so the ability to unlock some of that value meets an important social need.”
