Lender Prudential has entered the equity release market, with a product available to members of its club, Prudential Premier Mortgage Service (PMS).
John Malone, national mortgage manager at PMS, said: ‘The average retired person has only £13,765 a year annual income, but those who are homeowners have around £100,000 worth of equity in their home ‘ by releasing some of this, many can dramatically improve their standard of living.’
The Prudential Home Equity Release Plan offers retired homeowners aged 60 and over two options. They can either take a lump sum, or can choose a guaranteed fixed monthly cash release for the rest of their life coupled with a cash lump sum. The interest rate starts at 6.96% for the Standard lump sum option, and 7.18% for Cash Plus monthly payment.