"Moving to a flexible pricing solution allows for better and more competitive rates for customers, and we’re delighted to be able to do so in a way that will be frictionless for brokers to utilise."
The personalised interest rate will be contingent on several factors including age, loan amount, property type and postcode.
The introduction of flexible pricing also marks a simplification of the products within the Classic range, with the existing 12 LTVs making way for just four product variants under the Classic Flex Pricing umbrella. The four products will include a lump sum and drawdown version and two fee options as in the past, meaning customers can choose a fee-free version or one that come with a £500 arrangement fee.
The new pricing methodology will be fully integrated with equity release sourcing platforms including Advise Wise, IRESS, and AiR, meaning brokers can continue to access the Classic range the same way.
The new approach will also create added transparency for customers in relation to the KFI validity period. All KFIs generated under the new approach will be valid for 21 days, protecting customers from any rate increases after receiving a quote, allowing time for them to look at their options before submitting an application. This will also give brokers a date for the diary to alert customers when the quote is nearing expiry.
Additionally, the new flexible pricing method treats customers who are within 50 days of their next birthday as if they have already reached the milestone, potentially allowing them to borrow at a lower interest rate.
Head of product at Pure Retirement, Brendan Gilligan, said: “In a world where people are likely to be more cautious about making major financial decisions, we want to offer them a retirement solution that they know will be tailored to their bespoke needs and circumstances.
"Moving to a flexible pricing solution allows for better and more competitive rates for customers, and we’re delighted to be able to do so in a way that will be frictionless for brokers to utilise.”
