Newlife launches Two New Home Reversion Plans

Newlife has launched two new Home Reversion products – the Optimum plan and the Options plan.

Related topics:  Retirement
Millie Dyson
30th June 2011
Retirement
This move comes as the company rebrands to Newlife – home related finance and reflects the company’s commitment to expanding their product range beyond their current lifetime mortgage focused offering.

The competitive Home Reversion Plans offer greater flexibility to customers who wish to release a more substantial sum than with a lifetime mortgage, or those wishing to protect some of the equity in their property and leave a guaranteed inheritance.

There are two versions of the Home Reversion Plan:

- Optimum Home Reversion Plan – minimum release £25,000 – maximum £250,000. 100% of the property value is sold.

- Options Home Reversion Plan – minimum release is the lower of £25,000 or release based on sale of 25% of the property value – maximum £250,000. Between 25% and 95% of the property value may be sold.

The Home Reversion Plan complements Newlife’s existing Lifetime Mortgage range which already includes Lifetime Lump Sum and Lifetime 2nd Home mortgages. As with all of Newlife’s equity release products, the new Home Reversion Plans are fully compliant with SHIP guidelines.

Peter Lucas, Chief Executive of Newlife – home related finance, commented:

“The extension of our portfolio enables us to provide a more comprehensive offering, and meet a wider range of financial requirements.  We deal exclusively through intermediaries and our new Home Reversion Plans have been developed in response to feedback from advisers.

"This enhances our offering in the equity release sector and demonstrates our long-term commitment to this growing market.

“This launch takes place as we reveal our new brand – Newlife – home related finance – and is tangible evidence that we are committed to expanding the range of products that we offer.”

Peter Welch, Head of Sales and Distribution at Bridgewater Equity Release, commented:

“It is vitally important for the overall equity release market that we have a fully-functioning, competitive home reversion sector and therefore we welcome Newlife’s first foray into reversions with these two new products. 

"Increased product choice and a greater focus on reversions from both providers and advisers alike helps project the sector in a brighter light, delivers confidence and certainly offers clients a much more rounded choice of equity release options.

“In these economic times with house price fluctuations, reversions are often a more suitable equity release option, particularly for those individuals that want certainty and do not want rolled-up interest products. 

"There is also the advantage with reversions that clients can be sure of leaving a legacy if they do not release 100% of their home’s value – this is not the case with lifetime mortgages where the final debt is unknown at the time the product is taken out.  

“We believe that there are many individuals who would find a home reversion product a much more suitable way to release equity from their home. 

"We would therefore urge advisers to look at Newlife’s offering and other products in the sector to make sure they have the necessary knowledge and expertise to recommend the right product for their client.” 
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