Norwich Union is introducing a home-reversion plan, which will be sold on a fully advised basis. The plan includes an inheritance protection guarantee to protect the value of an estate in the event of death or a long-term care requirement in the plans first four years.
A house price inflation guarantee aims to ensure that the customer will benefit from rises in the value of their property. If the price has risen more than 7.5% a year above inflation since the start of the plan on the sale of the property, the excess is shared equally with the customer.
Our view
A great idea to share excess growth above a certain level, but are NU gambling on property slowdown and you dying or are they being generous?
Equity release(Lifetime mortgages) and home reversion schemes are complex and dangerous for the un-informed but can change a person's life.
You need to seek professional advice before committing to such a scheme.
Learn more in our Equity Release Centre in our Mortgage Crazy.com site.