Norwich Union is replacing its equity release scheme, Capital Access, with Flexible Cash Release, a plan that will allow elderly homeowners to access up to 45% of the capital locked up in their property.
The former plan, which enabled homeowners to access a set 30% of their property value, has been scrapped in favour of Flexible Cash Release which will release any amount up to 45%.
Interest on the plan is fixed at 7.85% compound on the value of the loan. On Capital Access the interest was fixed at 2.9% of the property value, allowing capital appreciation on the property to offset the cost of the loan.
Under the new plan there will be a new facility to arrange a further loan and borrowers will be safeguarded from negative equity.