GE Life has launched a new equity release plan that enables clients to borrow a larger proportion of...
GE Life has launched a new equity release plan that enables clients to borrow a larger proportion of the equity in their property, while refunding legal fees and up to £250 in valuation fees on completion.
Peter Fenner, IFA marketing manager at GE Life, said: 'The advantages of the product are that the amount of money people can borrow is as high as possible ' up to 60% LTV. This is good for older people. It is also customer friendly as there are no fees.'
GE Life will also tell IFAs how much their client will be entitled to when the house is sold, as repayments are fixed in advance.
David Evans, managing director at GE Life, said: 'Everything points towards the equity release market expanding rapidly over the next few years. Interest rates are low, which favours borrowers but works against savers. Attitudes to inheritance are also changing, away from a self-sacrificing desire to leave something for the children and there are more companies offering products.'
Additional features of the plan include a no-negative equity guarantee, a minimum age of 60 and a minimum loan value of £10,000. Commission is fixed at 1% of the loan with no upper limit.
Crown Equity Release, another equity release provider, agreed the equity release market is set to be buoyant this year. Mark King, managing director at Crown Equity Release, said that one of the main benefits of an equity release scheme is the tax savings that can be achieved.
He said: 'Eliminating inheritance tax, equity release is an excellent way for people to protect their beneficiaries' assets.'
