Just Retirement launches flexible equity release

- Flexible equity release product.

- Comprehensive support package for IFAs.

It is also unveiling what it believes to be the most comprehensive, high quality support and education package for IFAs, currently in the market.

Just Retirement has built a training package in association with the Chartered Insurance Institute to help advisers to obtain CF7 exams, Personal Finance Society roadshows and other measures to be announced shortly.

Just Retirement has designed its Equity Release Plan to offer clients flexibility, drawing down money only as and when they need it, with a fixed interest rate for each drawdown and no hidden charges.

Extensive research into the area has repeatedly revealed that above all clients want flexibility and control from equity release products.

Sales Director, Andrew Megson, explains: “Just Retirement believes that clients should not have to pay more for draw down. We want to encourage people to only take what they want when they need it, and as such offer a low interest rate for straight cash release and draw down.”

The Equity Release Plan is also different to those of its few competitors because it offers a number of USPs, these include : rate t at 5.99%; LTVs from 25% to 42%; the ability to draw down modest initial cash advances as low as £10,000 and further cash advances as low as £2,000.

Additionally, as part of a special offer, the valuation fee will be refunded on completion for all applications received by 31 December 2005.

KEY POINTS

Flexibility and control - clients draw down cash only as and when they need it

Allows modest withdrawals - initial cash advances as low as £10,000 and further cash advances as low as £2000

Fixed interest rate and no hidden charges

Lowest interest rate currently on the market at 5.99%

Valuation fee refunded on completion for applications received by the end of December 2005

LTVs from 25% to 42%, depending on age of applicants and with no maximum age

Fixed Lifetime Mortgage offers enhanced cash advances for those with medical or lifestyle conditions a care home income option for those who need to move into care permanently a never increasing charge

Income guaranteed for life from the Lifetime Income Plan – clients wishing to receive an income for life can use the Just Retirement Lifetime Income Plan on preferential terms

No negative equity guarantee

A comprehensive training and support package for IFAs includes:

- In association with the Chartered Insurance Institute, a pilot scheme with 400 IFAs to ensure that they are trained and qualified in equity release CF7 exams

- Sponsorship of 15 Personal Finance Society Roadshows in November and December focusing exclusively on equity release

Attractive commission levels centred on advice offering a minimum £600 on initial cash advance, 2% of each cash advance and 2% on further cash advances

First Class service - Just Retirement brings its already proven service track record in enhanced annuities to the equity release market

Sales Director, Andrew Megson, says: “Equity Release provides solutions for a great many people in retirement, helping to supplement inadequate pension provision and enabling clients to maintain the lifestyle they enjoy. We know this is a sensitive area and we are committed to helping IFAs provide the right solution for their clients in the right way. The focus on service, support and value that Just Retirement has brought to the annuity market is central to our Equity Release offering.”

Mike Fuller, Chief Executive of Just Retirement added:

“The FSA are working to ensure that firms treat customers fairly, highlighting weaknesses in providers who ignore whether IFAs have adequate knowledge of the product and the market. Many providers also fail to offer adequate support to handle technical or servicing enquiries on their products. Just Retirement believes that this approach is wrong and will do everything it can to support IFAs.

“Additionally the equity release market has been characterised by products which release large cash sums and charge relatively high rates of interest. These sums are often in excess of the immediate needs of clients, requiring them to invest surplus cash in investments, which often yield less than the rate of interest at which the loan is accumulating or involve inappropriate risks. We believe this is wrong for many clients and will continue to work through product innovation and our partnership with IFAs to deliver a range of fairer solutions for the client.”

IFA COMMENT:

Peter Fisher, Director, NHFA Ltd, said:

“The Just Retirement plan breaks new ground within the IFA market by offering the lowest rate currently available within the equity release market for Lifetime Mortgages at 5.99% AER, and because it offers the choice between a traditional roll up mortgage or a fixed repayment option at the outset. With the latter the debt is fixed from outset and overcomes the concerns of a normal lifetime mortgage where the total debt could effectively leave the estate beneficiaries with no inheritance.

“These options both offer a drawdown facility which gives the flexibility to minimise the debt roll up by taking funds as they are needed, rather than as an initial lump sum. With the entry levels low for both the initial cash advance and subsequent draws, this is of particular advantage to those clients who now, or could in the future, be entitled to means tested state or local authority benefits.

“The set up costs are competitive and overall this package will enhance choices within this market. All in all this product offers a fantastic deal combining market leading interest rate with flexibility and choice."