It has also launched an online calculator to help advisers calculate the potential savings that can be made using the Pru’s flexible product.
- The calculator compares different loan amounts and interest rates — enabling advisers to see the possible impact of drawing down funds rather than releasing one lump sum at outset
- Adviser’s can input the exact amount(s) they want, and can compare loans at different interest rates
- The calculator allows advisers to consider both of Pru’s product options — Flexible and Flexible Plus
- Pru confirms it will be open for new business from 17 October
This confirmation follows the launch of the illustrations system for Pru’s Property Value Release Plan a month ago. The new product 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.
David Still, in retirement director, for Prudential UK, said: "The Pru’s Property Value Release Plan has already been well received by advisers. Implementing the processing capability on the 17 October marks the start of a series of service innovations for advisers."
The innovative calculator allows advisers to do their own research on Pru’s Property Value Release Plan, saving them valuable time. It is designed as an additional tool that can help advisers decide which lifetime mortgage represents the best deal for their clients. They can input very specific withdrawal requirements — from a more ‘traditional’ lump sum, to flexible drawdowns of varying amounts — to work out how Pru’s flexible loan facility can potentially save their customers’ money.2
To use the calculator advisers will need a UNIPASS digital certificate.
Product details and launch offers
The Pru Property Value Release Plan offers a competitive headline rate (6.45 per cent — 6.64 per cent AER and 6.9 per cent APR for comparison)3. There are two product options — Flexible and Flexible Plus. Flexible Plus boasts the feature of access to an increasing loan to value (up to 35 per cent) over the life of the loan.4
Commission to advisers will be £400 or 1 per cent of the initial loan advanced (whichever is the greater). 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 between £206-£529 depending on the value of the property. In addition, Pru is paying advisers an additional £100 per case commission for all business received before 31 March 2006.
The mortgage applications will be handled by Global Home Loans (GHL), the UK’s largest third party mortgage administrator. The Pru has a dedicated team at GHL and will be utilising their latest case tracking technology, which includes sending automatic updates to advisers to ensure they can follow the progress of client’s applications.
Jan Holt, Pru’s Head of Sales for Lifetime Mortgages, said: "The online calculator offers something really useful to advisers. It is part of our commitment to support them. Other initiatives we have taken recently include the establishment of a specialist lifetime mortgage team, and ongoing investment into the pruadviser website."
