Norwich Union
Cuts Equity Release Loan Rates
Norwich Union is reducing the interest rate on its Equity
Release loans with immediate effect. The reduction is in line with
the recent fall in long term interest
rates.
The new interest rate for Norwich Union’s Flexible Cash Release Plan, which
allows customers over the age of 60 to release a proportion of the value of
their home in the form of a cash lump sum, is 7.79% (cut from 8.25%).
The rate for the Flexible Income Release Plan, which enables customers over 60
to generate a regular income, falls from 8.4% to 7.94%.
Mark Kelly, director of Norwich Union Personal Finance, said: “Norwich Union’s
equity release plans offer customers a loan with the security of a fixed rate of
interest for life.
“The most appropriate market benchmark for lending of this type is long term
gilt yields, and over recent weeks these have fallen. I’m delighted that we are
able to pass this
reduction on to our customers in the form of reduced interest rates.”
Any customer who has already applied for a plan, but has not yet received their
loan will automatically receive the benefit of the new rate.
Norwich Union offers two options for people wanting to release cash from
their home. The Flexible Cash Release Plan releases a cash lump sum and the
Flexible Income Release Plan enables customers to receive a regular income – or
the option to take up to 25 per cent of the money released as a cash lump sum as
well as a regular income. Loans are secured by a legal charge on their property.
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