Royal London has announced a series of enhancements to its Principal equity release product.
The updates include the introduction of a drawdown facility and a reduced early repayment charge (ERC) period.
The new drawdown capability will enable clients to access their property wealth more flexibly, tailoring their withdrawals to suit their evolving needs.
The ERC period has been shortened from ten years to seven years, providing further flexibility for clients who choose to service the interest on their loan or make larger repayments.
Any pipeline cases progressing through application will continue under the previous ten-year ERCs. Upon completion, these cases will be switched to the new seven-year ERCs, and a communication will be sent to inform all parties.
Alan Ritchie, customer life stage and solutions director at Royal London Equity Release, commented: "The evolution of our Principal product reflects Royal London’s commitment to equity release as a core solution to meet customer needs. We know that the market must expand significantly to meet the growing customer demand for robust retirement planning and repayment of traditional mortgages.
“The new capabilities – a drawdown option and a reduced early repayment charge period – provide advisers and their clients with more choice and meaningful flexibility. We will continue to listen to advisers and also use insight from customers to innovate in the market and to stand out for customer outcomes."
