Standard Life today announces its entry into the equity release market in a partnership with retirement finance specialists, Leeds-based Age Partnership.
The Edinburgh-based business recognises what customers’ need from their life savings is changing, and for many people, a significant proportion of their life savings are tied up in their property.
Equity release enables homeowners aged 55 or over to access some of the money from their home, whilst still retaining 100 per cent ownership of their property. The money released, plus the accrued interest is then repaid on death or when they go into long-term care.
Susie Logan, brand and marketing director at Standard Life, said; “Equity release adds to our existing suite of life savings solutions, providing an option for those over 55 who want to release a lump sum of money for their retirement years. Since pension freedoms, we are seeing so much diversity in the way people are accessing their life savings.
“We chose to offer the solution through a partner who has been providing specialist equity release advice for the past 15 years and has helped over one million people decide that equity release is right for them. Furthermore, Age Partnership currently holds the highest net promoter score in the industry, so we are confident that our customers will receive great Equity Release advice.”
As the largest equity release broker in the UK, Age Partnership will not only be providing equity release advice but also guides to help educate customers, and online calculator tools. There will be four equity release solutions available via Standard Life.
Lifetime mortgage – allows a client to release a lump sum of cash from the value of their property, without the requirement to make regular monthly repayments. The amount released, plus any interest, is repaid when the property sold or the client goes into long term care.
Drawdown lifetime mortgage – similar to the lifetime mortgage, with the added option of releasing cash over time as and when it’s needed, rather than in a lump sum.
Interest-only lifetime mortgage – Similar to the lifetime mortgage but regular monthly repayments of interest are made, reducing the effect on the value of the estate.
Home reversion plan – allows the exchange of ownership of some or all of the property for a lump sum of cash, and a lifelong right to stay in the property.
Dan Baines, commercial director at Age Partnership, said; “Standard Life’s decision to offer an equity release service direct to customers is recognition that equity release is fast becoming a mainstream solution for later life financing.
“We’re proud that Standard Life, with such a strong finance pedigree, has chosen Age Partnership to offer equity release advice to its clients. There are more products on the market than ever before, providing homeowners with flexibility on how and when they choose to access their property equity. We look forward to helping Standard Life’s customers for many years to come.”