Welcome to Advise Wise Market News, the news feed where you can find the latest from the later life market, including rate changes, product and process updates and market events.
Market news
Canada Life extends £0 completion fees
Canada Life is extending the completion fee waiver on all Capital Select Options until March 2021.
The completion fee will remain at £0 on all Capital Select KFIs generated and will be extended from 10am on Tuesday 31 December to 31 March 2021.
Canada Life’s Capital Select Options offer:
- £0 completion fee (until 31 March 2021)
- Free valuations
- Capital and interest repayments (up to 10% of the initial advance, ERC free)
- 8-year fixed ERCs (5% for years 1-5, 3% for years 6-8)
- Downsizing Protection, free of charge
- Early Repayment Waiver, free of charge
- Optional cash reserve facility
Aviva rate change
From Friday 18 December, Aviva is changing interest rates on Lifestyle Lump Sum Max & Lifestyle Flexible Option for new business and additional borrowing.
- All KFIs produced on or after Friday 18 December will be based on new rates.
- All additional borrowing applications received up to and including Tuesday 29 December will be processed based on current interest rates.
- All additional borrowing applications received on or after Wednesday 30 December will be processed based on the new interest rates.
Reserve release interest rates are increasing by 0.22%.
- The new rate will be used on all reserve release requests from Friday 18 December.
- The interest rate will be based on the day the reserve release is requested; it will not be based on the day the money is paid/ released.
Hodge removes Retirement Mortgage product range
With immediate effect, Hodge is removing the Retirement Mortgage product range.
The Retirement Interest Only Mortgage (RIO) remains available.
Bain Capital acquires LV=
Bain Capital Credit, a global private investment firm, has acquired LV=’s savings & retirement and protection businesses.
The acquisition is subject to regulatory approval and approval from LV= members and is expected to complete by the end of 2021. In the meantime it remains business as usual, there is no immediate impact to you recommending LV=’s plans to your customers.
For more details visit www.lv.com/members
Hodge rate increase
Hodge will be increasing rates across some of the 50+and Holiday Let plans from close of business Thursday 17 December.
To secure the existing rates for your clients please ensure that the full application is submitted to Hodge by 9pm on Monday 21 December.
Applications received after this date will be subject to the new increased rates.
Christmas opening hours
We’ve collected for you all lenders and solicitors’ opening hours over the Christmas period.
You can check all opening times here.
Pure Retirement Classic rate change
Pure Retirement will increase rates to the Classic range from Thursday 10 December. The changes are as follows:
- Max – MER increased by 6 bps.
- Max Plus – MER increased by 10 bps.
- KFIs are available on the old rates until 23:59 Wednesday 9 December (midnight tomorrow).
- Applications on the old rates can be submitted (so long as the KFI was submitted before the above date) up until 23:59 Thursday 24 December.
- KFIs on the new rates are available from 00:01 Thursday 10 December.
LV= Lifetime Mortgage update
LV= will make some positive enhancements to the new Drawdown+ product, effective from the 8 December.
- The maximum loan amount, including any additional borrowing, is increasing from £500k to £1.5m.
- LV= is making free valuations on the Drawdown+ product available to an increased range of property values.
Pure Retirement Heritage product changes
Pure Retirement is making some changes to the Heritage range from Wednesday 9 December:
- The maximum initial loan value is increasing to £800k for all regions (previously £600k for England, £250k for Scotland and Wales)
- The maximum drawdown facility is now £200k
The above changes will apply to all Heritage ranges and product variants (Freedom 40, Fixed and GILT ERCs etc.) Please note that there will be no changes to the current rates.
ERC launches Best Practice Guide
The Equity Release Council has launched a Best Practice Guide to complement its Checklist for Advisers and support adviser firms when discussing and documenting customer needs.
The Best Practice Guide is designed to sit behind the current Checklist for Advisers and follows a review of the Council’s rules and guidance, to confirm they are in line with the regulator’s latest thinking.
LV= Interest Rate changes
The Lifetime Mortgage Drawdown+ and Lump Sum+ rates will be increasing as of 8 December. New rates from 2.57% MER.
Applications on old rates need to be submitted by 22 December 2020. Any pipeline cases already at offer stage which require a re-offer on or after 8 December will be offered on the new higher rates.
Canada Life rate change
Canada Life is increasing interest rates on Lifestyle Lite and Lifestyle Gold products from 8 December.
- Lifestyle Lite, from 2.55% to 2.59% MER
- Lifestyle Gold, from 2.90% to 3.01% MER
The new interest rates will also apply to additional borrowing.
- The deadline for submission of KFIs on the current rates is 10am on Tuesday 8 December
- The deadline for submission of applications on the current rates is 5pm on Friday 18 December
Advise Wise live webinar
When: Thursday 10 December, 3-4pm
Topic: All the benefits of adding fees to your research. Exploring the platform’s new feature.
The webinar will be hosted by Craig Faulkiner, Head of Distribution at Advise Wise, who will show you the platform’s new feature and all the benefits it can bring to your sourcing.
The webinar will cover:
- How the Advise Wise Platform can support you in selecting the most appropriate plan for clients looking to add the setup costs to their loan amount
- Latest changes to the product search results
- How to apply the new filters to your search results
- How to use cashback (where applicable) to drive better customer outcomes and reduce the overall cost of the client’s estate
- How you can understand the impact of the loan and all fees to your client’s estate
Registration now closed
Pure and Advise Wise “Unplaceables” webinar
When: 9 December 10–11am
Hosted by Anna Thompson and Daniel Edmondson, BDMs at Pure, with Jane Hanlon, Mortgage Club Manager at Advise Wise and Peter Barton, Partner and Head of Equity Release at Ashfords.
This webinar is all about hard to place cases, and we want to discuss your real life cases during the session. Please get in touch if you have something you would like to discuss.
Registration now closed
If you would like one of your cases discussing, please email marketing@pureretirement.co.uk
Canada Life webinar “The forever home”
When: Thursday 10 December 11am-12pm
Canada Life will discuss the forever home in more detail and will also explore some of the opportunities and challenges it presents to you and your clients. The webinar provides 45 minutes of unstructured CPD.
The forever home
In this webinar, Les Pick, head of sales, Home Finance, will provide an overview of our research findings and explore the following in more detail:
- The concept of the forever home
- Challenges and opportunities for advisers
- Delivering the best outcomes for customers
Registration now closed
One Family product updates
OneFamilly will reduce age and LTV on their Super LTV product from 9 December
- Age reducing to 65 (currently 70)
- LTV starting at 40% (currently 45%)
Alternative construction methods
With immediate effect, One Family is including alternative construction methods to their lending criteria, considering properties containing environmentally friendly materials and a low-impact sustainable building technique. This includes:
- cob construction
- wattle and daub
- thatched roofing
For all applications where these materials are used, the property construction must be deemed suitable by the valuer. If a property has a thatched roof, a specialist building insurance that specifically covers thatched roofs will be required prior to completion.
Pure Retirement Sovereign rate increase
Pure Retirement is increasing interest rates on their Sovereign product range from Thursday 3 December. The increase applies to LTV bands A, B and C and to the Sovereign Elite range. D, E and F will remain unchanged.
- The deadline for submission of KFIs on the current rates is 00:01 Thursday 3 December
- The deadline for submission of applications on the current rates is 00:01 Thursday 17 December.
Aviva rate change
From Monday 30 November, Aviva is amending interest rates on both the Lifestyle Lump Sum Max and Lifestyle Flexible Option, on new business only.
Where the rate has increased:
- All applications received up to and including 7 December will be processed using the data from Flextool version 09.11.2020 or 30.11.2020.
- All new applications received from 8 December will be processed using the new interest rates
- Where terms have been offered and the customer wishes to make an alteration to the loan, the new offer will be based on the new rates
- If an initial offer expires on or after 30 November, Aviva will issue a new 14 week re-offer based on prevailing interest rates.
Where the rate has decreased:
- All applications received on or after 30 November will be processed based on normal Flex Tool rules being applied
- Where terms have been offered and the customer wishes to make an alteration to the loan, the new offer will be based on new rates
- If an initial offer expires on or after 30 November, Aviva will issue a new 14 week re-offer based on prevailing interest rates.
Pure re-introduce Classic Super Max and Super Max Plus
Pure Retirement will re-introduce Super Max and Super Max Plus products on Friday 27 November with a rate reduction. New rates from:
- Super Max - 3.54% MER
- Super Max Plus - 4.14% MER
Advise Wise introduces fee option on sourcing platform
Advise Wise introduced the option to add client’s fees to their sourcing platform.
You can now enter client’s fees to your research, including your advice fee, solicitor fees and whether the client wishes to add these to the loan, deduct or pay from their own funds.
Advise Wise Platform will then calculate the net loan amount, net fees including cashback and will show an interest roll-up table to understand the impact of fees on the estate.
OneFamily Lifetime Mortgages changes
With effect from 1 December OneFamily will make the following changes:
Removal of all 2-year fixed products from new business
- Applications for 2-year Fixed must be submitted by 30 Nov
Variable rate product changes: The CPI will be decreasing to 0.5% and the new rates on new business Variable lifetime mortgages will be:
- Variable Lite Interest Roll up with Voluntary Payment: 2.80% MER (2.84% AER)
- Variable Lite Interest Payment: 2.80% MER (2.84% AER)
- Variable Standard Interest Roll up with Voluntary Payment: 3.20% MER (3.25% AER)
- Variable Standard Interest Payment: 3.20% MER (3.25% AER)
Restriction to Spray Foam applications (effective immediately):
OneFamily have changed the criteria regarding Roof Spray Foam and, as long as the installation company is currently trading:
- They will consider open cell spray foam only
- The customer will be required to provide evidence that the foam conforms to the British Board of Agreement (BBA) certification, along with an explanation of materials used from the manufacturers and/or installation company at application stage
- A valid long term Roof Spray Foam Guarantee will also be required
- The current condition of the roof foam will be subject to valuers comments
Just rate change
Just will increase interest rates across the entire Just For you LTV series by 0.30% from Thursday 26 November.
The deadline for KFIs submission on the current rates is 23.59 on Wednesday 25 November.
Any applications for existing quotes on the current rates need to be submitted before the 10 December.
OneFamily webinars
- 24 November 1pm - How to generate more leads, with Alan Cairns - OneFamily
- 26 November 10am - Social media Marketing, with Alan Cairns - OneFamily
- 26 November 1pm - Lifetime Mortgages portal training, with Dean Linklater - OneFamily
- 30 November 11am -Q&A with Peter Barton - Ashfords Solicitors
- 30 November 3pm - How to generate more leads, with Alan Cairns - OneFamily
- 1 December 10am - Social media Marketing, with Alan Cairns - OneFamily
- 1 December 1pm - Lifetime Mortgages proposition overview, with Dean Linklater - OneFamily
- 3 December 10am - Q&A with David Burrowes - ERC Chairman
Registration now closed
Pure Retirement Heritage rate change
Pure Retirement will increase interest rates on Heritage product range on Wednesday 25 November.
The rate increase applies to all Heritage products, both GILT and Fixed ERC products, along with all Heritage Freedom 40 products.
- The deadline for submission of KFIs on the current rates is 23.59 on Tuesday 24 November
- The deadline for submission of applications on the current rates is 23.59 Tuesday 8 December
Pure Retirement new Adviser toolkit
Pure Retirement releases new additions to their Marketing Toolkit
Visit the ‘Adviser Toolkit’ page and explore the guides and marketing templates which can be personalised in your branding to help you reach your potential client base.
- Digital & Print Marketing Templates
- Case Studies
- Bespoke Resources to suit your needs
L&G rate increase
L&G will increase interest rates by up to 0.26% across the Black to Teal lifetime mortgages for all KFIs generated with effect from 6pm on Tuesday 24 November.
To secure the current interest rates:
- You must generate the KFI by 6pm on 24 November 2020
- You must submit the application by 5pm on 1 December 2020
- The valuation needs to be carried out by 30 December 2020
- All supporting documentation required must be provided by 5 January 2020
- The case needs to be offered by 19 January 2020
- Completion will need to take place within the 50 day offer validity period
Advise Wise extends Instant KFI to Just plans
From today, you can request an Instant KFI for the Just For You Lifetime Mortgage range in just three clicks and download the KFI in less than a minute on Advise Wise Platform.
Request a KFI now! Log into your account
Pure Retirement update webinar
When: 25 November 10-11am
With Daniel Edmondson, Pure Northern BDM.
A live webinar update to cover:
- Full product update
- Pure new and improved marketing toolkit
- Tech improvements
- Lockdown update
Registration now closed
Pure Christmas Quiz
When: 1 December, 10-11am
Get into the Christmas spirit with Pure’s Zoom Christmas quiz!
Dig out your Christmas jumpers, get your thinking caps on, as the winner will receive an M&S Luxury Hamper!
Pure are supporting Macmillan Cancer Research Charity this year. Entry to the quiz is free, but any donations will be welcome too.
Registration now closed
L&G later life divorce webinar
When: Wednesday 18 November, 10 - 10.45am
Join L&G’s next live stream: Later life divorce and the impact on retirement planning.
The panel:
- Cecilia Furner, Strategic Account Director, Legal & General Retail Retirement Income
- Debora Price, Professor of Social Gerontology, University of Manchester
- Amyr Rocha-Lima, Partner, Holland Hahn & Wills LLP, chairman-elect of the CISI Financial Planning Forum
- Meg Dickens, Marketing Director, Legal & General Retail Retirement
- Rob Miles, Head of Adviser Sales, Legal & General Home Finance
Registration now closed
Pure Retirement Classic rate change
On Wednesday 18 November, Pure Retirement is increasing rates on some of their Classic products. Rate increases will apply to KFIs generated after 00:01 on Wednesday 18 November.
However, there is still time to secure the lower rate for your client(s).
- Generate a KFI by 23:59 on Tuesday 17 November
- Submit the application by 23:59 on Monday 30 November
Canada life coffee meeting
Les pick, Head of Sales at Canada Life, is running a coffee meeting for advisers on Friday mornings during lockdown.
It’s a relaxed and fun hour to discuss issues that you are facing as 2020 draws to a close. To join and bring a coffee and biscuits register your interest at hf-sales@canadalife.co.uk and you’ll receive the link to the Zoom meeting
Aviva products change
From 9 November Aviva is making the following changes:
- Introduction of new gilts/ Early Repayment Charges for New Business, Additional Borrowing and Reserve Releases
- LTVs changes for New Business, Additional Borrowing, Moving Property, Change of Ownership and Sale of Land
- Some interest rates will increase for new business, as a result of the LTVs changing
Hodge update
Wales
- Restriction level: firebreak
- From 23 October to 9 November
- Valuations can proceed but estate agents are supposed to be closed. Access for purchases via agents is potentially an issue. Set of national rules to be put in place post 9 November.
England
- Restriction level: full lock down
- From 5 November to 2 December
- Valuations can proceed and agents are allowed to trade.
Scotland
- Restriction level: 3 tiers dependant on location. Highest in central belt- Glasgow- Edinburgh
- Subject to daily review
- Updated guidance (2 November) home moves and associated activities will continue to be permitted, provided they can be carried out safely. Surveys and Home Reports can also be undertaken. People can move home in all protection levels, and to and from areas with different levels.
Pure retirement update
Pure Retirement are fully operational with all products available and valuations still taking place. Pure are monitoring the situation and will let you know of any alterations to products or processes.
OneFamily Update
OneFamily confirms business as usual during the new lockdown; Connells have confirmed that it is BAU and there is no change to the valuation process. Physical valuations will still take place.
Pure Retirement new repayment calculators
Pure Retirement introduces two calculators, designed to help your clients see the benefit of making annual overpayments and monthly repayments on their Pure lifetime mortgages.
The Annual repayment and ERC calculator can be used for Classic, Heritage and Heritage Freedom 40 lifetime mortgages which allow between 10% and 40% ERC-free annual repayments. By entering a few details it will show:
- How irregular or adhoc payments can affect the outstanding balance and equity remaining
- Whether any ERCs are applicable
The Monthly repayment calculator is designed to be used in conjunction with the Classic range, that allow 10% ERC-free repayments and 12 payments to be made within a year. The calculator shows:
- The impact monthly repayments have on the outstanding balance
- The maximum payment allowed per month ERC-free
- The equity remaining in the property
- Whether any ERCs are applicable
Just valuations
Just will be currently running BAU for England, Scotland, Wales and NI where they are able to conduct full physical valuations. This is subject to any new changes.
Ashfords update
Due to the re-introduction of the National lockdown, Ashfords will reduce numbers in the office team from 20 to 12. Their role will be to ensure cases are processed, post dealt with and original schedules are sent on to lender sols.
Ashfords travelling solicitor team will continue to work with a revised letter should they be stopped by the Police questioning their purpose of travel.
In order to be able to continue to work efficiently and to reach the clients, Ashfords is going to initiate the Traffic Light process with immediate effect:
On instruction advisers should let Ashfords know if the clients are:
- Green - Computer literate - can receive and open emails, reply to emails open attachments and print off documents/scan and send them back
- Amber - Semi-computer literate - can receive and open emails, open attachments and reply but not able to print/scan
- Red No computer literacy
How it works:
- Green clients - Ashfords can deal with most of the case via email, including the initial papers, queries etc to avoid delays with the post. When instructing Ashfords, let them know about the clients’ ‘green status’ and include email addresses, mobile number etc. Forewarn the clients that documents will be emailed through to them within a few days from instructing Ashfords.
- Amber clients - Ashfords will email through standard letters, but nothing that needs printing off or scanning. Make it clear the client has Amber status when instructing Ashfords, so they don’t email them documents.
- Red clients - all communication will be sent via post and telephone. In this case please don’t include any email addresses at all to avoid any issues when you instruct Ashfords.
LV= valuation options available
Following the recent lockdown restrictions, LV= still intend to carry out physical valuations if the client and surveyor mutually agree it is safe to do so. It is essential that advisers select the correct product variant on LV= new smarter portal, in accordance with their customer’s wishes to avoid instructing the wrong type of valuation. LV= are taking all necessary measures to ensure their surveyors are aligned to the latest government guidance. Prior to any physical valuation being carried out, a full risk assessment will be undertaken as part of the surveyor booking process.
L&G launches Energy Saver Cashback offer
Legal & General has introduced Energy Saver Cashback offer across the Flexible and Optional Payment Lifetime Mortgage products.
Energy Saver Cashback rewards customers who are using some, or all, of the money released from their mortgage to make energy efficient improvements to their home. Customers can claim 10% of the total cost of qualifying home energy efficiency improvements, up to £1,000 on an initial advance or up to £200 on a maximum of 3 drawdowns.
To qualify for this offer:
- Customers must be completing one or more of L&G qualifying works
- They must register their interest in the offer within 30 days of completion of their initial advance or drawdown
- All works must then be completed, and they must claim the cashback within 12 months of completion of their initial advance or drawdown
- All work must be carried out by a TrustMark approved tradesperson
For the full details view the customer guide. Energy Saver Cashback
ERC Q3 2020 equity release market statistics
The Equity Release Council has published the Q3 2020 market report.
Key highlights:
Equity release activity makes a steady return in Q3 with 10,351 new plans agreed
- The number of new equity release plans agreed (10,351) increased by 41% from the previous quarter as national lockdown conditions were eased.
- The number remained 9% down year-on-year (from 11,419 in Q3 2019) and it was the second slowest quarter since Q1 2018 (discounting Q2 2020).
- There was a gradual increase in new customer activity during the quarter: July saw 3,147 new plans agreed, followed by 3,228 in August and 3,976 in September.
- 6,697 customers returned during Q3 to take extra drawdowns from their agreed reserves – up 19% from 5,608 in the previous quarter but 30% below the 9,605 seen this time last year.
- £963m of property wealth was unlocked in total during Q3 2020 by new or returning customers, up by 38% from Q2, but down 3% from Q3 2019.
- The climb back towards pre-Covid levels of activity was influenced by an extended pipeline and delayed cases from earlier in the year; new plans agreed in the six months from April to September remained 20% below the same period in 2019.
Pure Retirement rate change
On Thursday 29 October, Pure Retirement is reducing interest rates on Classic Max Plus product by 5-6bps MER. All other products will remain unchanged.
Pure and Advise Wise “Unplaceables” webinar
When: 11 November 10-11am
Hosted by Jane Forshaw, BDM at Pure Retirement, with Jane Hanlon, Mortgage Club Manager at Advise Wise and Peter Barton, Partner and Head of Equity Release at Ashfords.
Registration now closed
If you would like one of your cases discussing, please email marketing@pureretirement.co.uk
Hodge Holiday Let webinar
When: Wednesday 25 November 2020, 11am
An informative 40 minute webinar with Hodge holiday let experts Brad Street and James Enos, joined by special guests Mark and Joe Stallard of House and Holiday Home Mortgages and John Endacott, Tax Partner for PKF Francis Clark.
This webinar will cover:
- Introduction into the holiday let market
- Overview of the mortgage providers within the market incl. criteria
- Things to consider when advising on a holiday let mortgage
- The tax benefits associated with holiday lets
Registration now closed
Just rate change
As from Wednesday 28 October, Just will be decreasing the interest rates on Green lifetime mortgage, as well as J2, J2.5, J3 and J4 LTV series. The lowest rate across these LTV’s now starts at 3.08% and from 2.90% on lower LTV’s.
Just will also be removing the age bracketing from J1 LTV series.
OneFamily onsite valuations update
OneFamily position in Wales:
Connells, OneFamily’s Surveying partner, will continue to undertake onsite valuations through the short lockdown period where it is safe to do so, and the property occupier is happy and comfortable to allow access.
Given estate agencies will be closed over the period, in the case of vacant properties the physical inspection will be reliant upon keys or attended access being available.
Where occupiers are not comfortable to allow access and wish to defer, these inspections will be rescheduled from 9 November onwards.
Government Tiering System:
Following the Government’s Covid-19 Tiering System, onsite valuations will continue as they have been, in accordance with Connell’s guidance document and shown on OneFamily Covid-19 Hub Page.
Hodge product fee process change
Hodge is making an amendment to the product fee process on all Hodge products.
Currently the applicant can pay their product fee:
- in advance,
- add product fee to loan
- deduct product fee from loan.
As of Monday 26 October, Hodge will be removing the ‘deduct from loan’ option.
Lender update from Canada Life
In this webinar hosted by Craig Faulkiner, Les Pick from Canada Life gives an overview of Canada Life USPs and key criteria they can accept.
Pure Retirement rate change
Pure is reducing interest rates on the Heritage range from Saturday 24 October. New rates from 3.85% MER.
The rate reduction applies to both GILT based and Fixed ERC products, along with the Heritage Freedom 40 products (Plus, Max, Max Plus).
Lenders’ updates on Welsh valuations
Canada Life - Physical inspections remain available, however the surveyor will assess individual risk and agree with the client if a visit can be made
Hodge - Physical inspections remain available, however the surveyor will assess individual risk and agree with the client if a visit can be made
Just - Physical inspections remain available, however the surveyor will assess individual risk and agree with the client if a visit can be made. Just can also consider desktop valuations in exceptional circumstances
L&G - Physical inspections remain available, however the surveyor will assess individual risk and agree with the client if a visit can be made
LV= - Physical inspections remain available, however the surveyor will assess individual risk and agree with the client if a visit can be made. Advisers should ensure the correct product is selected and, in case of desktop valuations, a physical inspection would still be required prior completion.
Pure Retirement - Valuations for Welsh properties will be booked for week commencing 9 November.
Hodge Property referrals update
To get faster answers to advisers property related queries, Hodge won’t process any property referrals or criteria queries via email and is amending the property referral process as follows:
- If an enquiry is submitted via email, the adviser will be directed to Hodge online information
- Should this information not answer the advisers query, they should call the lending support team
- If the lending support team cannot answer the query themselves on the phone, as the property feature is a ‘refer’ category that requires an underwriters input, the BDM will submit a formal referral to Hodge property underwriters to process (typically a 48hr turnaround)
Check Hodge Property Eligibility Guide
Check Hodge property criteria
Aviva ‘Early repayment charges’ webinar
When:
- Thursday 29 October 9.30am
- Wednesday 4 November 10am
Registration now closed
The webinar will cover:
- The types of early repayment charges and how they operate
- The early repayment charge exemptions that can apply
- The relevance of those to customer circumstances
- The information you could gather to demonstrate suitability of advice in this area
- Challenging common customer intentions
You will earn 30-minutes CPD.
Pure Retirement rate change
Pure Retirement is decreasing interest rates on Classic Midi, Max and Max Plus products. New rates from 2.49% MER.
All other products will remain unchanged.
L&G product changes
From Tuesday 20 October, L&G is aligning the underwriting criteria on Flexible & Optional Payment Black product variant to the rest of its range.
- Minimum property value will be reduced to £100,000
- Maximum property value will be reduced from £4,000,000 to £2,000,000*
- Minimum loan amount will be reduced from £100,000 to £10,000
- Maximum loan amount will be reduced from £2,000,000 to £750,000*
Any Applications submitted on the Black product from KFIs generated after the 20 October will also receive a higher rate of commission, again aligned to the rest of the products in the range.
*As with the other Flexible and Optional payment product variants, L&G welcomes large loan enquiries over £750,000 / £2 million property value.
For more information and the new interest rates check the product summaries:
- Flexible Lifetime Mortgage Product Summary
- Optional Payment Lifetime Mortgage Product Summary
- Income Lifetime Mortgage Product Summary
- Flexible Lifetime Violet Mortgage Product Summary
- Optional Payment Lifetime Violet Product Summary
For pipeline cases
If you haven’t yet submitted an application, the easiest way to take advantage of these new interest rates is to generate a new KFI.
If you have submitted an application but haven’t yet received an offer, and these new interest rates are lower, L&G will automatically offer on these new rates for acceptable cases.
If you’ve already received an offer and would like L&G to re-offer on one of these new rates, generate a new KFI.
Club members commissions increased to 2.85% on Black Flexible and Optional Payment LTMs. Max commission is capped at £10K, with any balance rebated to client.
L&G interest change
On Tuesday 20 October at 6pm, L&G is reducing interest rates by up to 0.12% across Teal, Navy, Indigo and Violet product variants.
LV= Equity Release Underwriting Masterclass
When: 5 November, 10am
During the session you will hear from LV= Property Underwriting and Sales experts and learn more about the end to end journey on their new smarter portal.
During the session you’ll also hear:
- LV=’s lending criteria and underwriting approach for lifetime mortgages.
- The routes to engage with LV=’s underwriting team regarding a lifetime mortgage application, both on and off portal.
- Learn more about the LV= Equity Release proposition
CPD will also be made available to attendees shortly after the webinar.
Registration now closed
Hodge rate change on Holiday Let
On Tuesday 20 October 2020, Hodge will be increasing the rates on 75% LTV Holiday Let mortgage products.
The new rates from Tuesday will be:
- Holiday Let 2 Year Fixed £995 fee will increase from 3.65% to 3.85%
- Holiday Let 2 Year Fixed £0 fee will increase from 3.80% to 4.05%
- Holiday Let 5 Year Fixed £995 fee will increase from 4.05% to 4.25%
- Holiday Let 5 Year Fixed £0 fee will increase from 4.20% to 4.40%
All applications approved on or after this date will be subject to the new increased rate.
L&G updates Sustainability Criteria
Legal & General Home Finance can now consider the following scenarios/properties with immediate effect:
- Annexes with a separate Council Tax banding to the main property (but still sharing all services);
- Properties with Japanese Knotweed within 7 metres of the boundary but more than 7 metres away from habitable spaces;
- Properties with up to 15% single skin. Where this includes bathroom or kitchen providing there is only 1 wall of single skin;
- Properties with some element of commercial use providing they meet the criteria detailed in the link below;
- Properties which are in close proximity to a commercial business – greater clarity has been provided on what may and may not be acceptable depending on the planning use Class of the business the property is close to.
In addition:
L&G has added to the list of warranty providers for properties up to 10 years old;
- They have provided greater clarity on definition of New Build properties, and
- Whilst they still require the youngest applicant to be no older than 90 when they apply, completion can now take place within 6 months of their 91st birthday
Updated Suitability Criteria can be found here.
L&G extend OPLM customers payment holiday
L&G are extending payment holiday for their existing OPLM customers until 28 February 2021. This will allow customers to miss payments without contributing towards the 6 allowed missed payment limit on the product. All customers who have already taken advantage of the payment holiday will be informed of the extension and provided with the choice of continuing with their current payment holiday or to re-start their Monthly Interest Payments if they are in a position to do so.
Aviva rate change
Aviva is increasing interest rates on 16 October on both the Lifestyle Lump Sum Max and Lifestyle Flexible Option, on new business only.
Just cashbacks change
From Friday 16 October, Just is amending the maximum cashback cap to £20,000 across all Just For You cashback variants.
For customers who choose to take the option of a cash facility, there will be a 0.05% increase to the MER rates.
There are two tiers of interest rate reduction for those customers who choose to service some or all of the monthly interest:
- If servicing >0.01% of the monthly interest amount there will be a 0.00% reduction
- If servicing 25.01% + of the monthly interest amount there will be a 0.20% reduction
All new quotes from this day will be subject to the new cashback limits. Applications for any existing quotes need to be submitted before the 30 October.
Let us know how we did
Supporting advisers is at the core of what we do and we'd love to hear what our members think of the Platform and the Mortgage Club.
We’d appreciate it if you could complete a short (3 minute) survey, for your chance to win a £25 Amazon voucher! Plus, we’ll plant a tree for each survey completed!
Pure rate change
From 8 October, Pure Retirement is decreasing interest rates on Classic Super Lite, Lite, Lite Plus and Midi. New rates from 2.22% MER.
Super Max, Super Max Plus and Elite Range will all remain unavailable for New Applications and Further Advances.
LV rate change
From 8 October, LV= is decreasing interest rates on the Lifetime Mortgage Drawdown+. New rates from 2.41% MER.
LV lending policy change
From 8 October, LV= is making changes to the lending policy for Lump Sum + and Drawdown+.
- Acceptable timber frame to change from post-1960 to post-1970
- Ground rent must not exceed 0.2%
- Maximum storeys reduced from 7 to 6
- Annual service charges and ground rent increase from 1.5% to 2.5% (subject to ground rent not exceeding 0.2%)
- Flying freehold to increase from 10% to 15%
- Sheltered/Age restricted properties no longer permitted
Please note, that the application deadline for any cases quoted on the previous lending criteria up to close of business on 7 October will be 21 October.
View the revised Lending Policy and the Lending Policy Guide for full details
Aviva rate change
Aviva is changing interest rates from Wednesday 7 October, on both the Lifestyle Lump Sum Max and Lifestyle Flexible Option, on new business only.
OneFamily LTV changes
From Wednesday 7 October, 2020 OneFamily is reducing the LTVs of Lite and Standard products by 1.5% and 3% respectively.
All new business and additional borrowing applications submitted from Wednesday 7 October will be subject to the new LTVs.
OeFamily is also re-introducing onsite valuations on all lifetime mortgage products. Desktop valuations may be used where a customer is isolating or cannot comply with Connells’ risk assessment requirements. Where a desktop valuation is used, a retention may be applied until an onsite valuation has verified the property value. A retention of up to 15% of lending may be applied to Standard LTV cases and 10% to Lite and Super LTV cases.
Three free prize draws from 1 October 2020
To celebrate our first year, over the next three months from 1 October, we’re running three individual prize draws for your chance to win great prizes just by using Advise Wise!
You’ll get a free entry, for every KFI requested through the Advise Wise Platform or Mortgage Club. T&C apply*.
Canada Life rate changes
With effect from 10am on Tuesday 6 October, Canada Life is reducing the interest rates on:
- Capital Select range, new rates from 2.95% MER
- Lifestyle range, new rates from 2.55% MER
- Prestige range, new rates from 5.17% MER
Canada Life is also increasing the LTVs on all Capital Select Options.
You can find all key documents on Canada Life website:
Pure Retirement & Advise Wise The Unplaceables event
When: 14 October 10.00-11.00am
Live webinar with:
- Anna Thompson, BDM at Pure Retirement
- Jane Hanlon, Mortgage Club Manager at Advise Wise
- Peter Barton, Head of Equity Release at Ashfords
This webinar is all about hard to place cases, and we want to discuss your real life cases during the session.
Registration now closed
If you would like one of your cases discussing, please email marketing@pureretirement.co.uk.
Just introduces cashbacks to the J2.5 LTV series
As from Friday 2 October, Just will be introducing a 2% and 5% cashback variant to the J2.5 LTV Series.
Please note:
- For customers who choose to take the option of a cash facility, there will be a 0.05% increase to the MER rates
- There are two tiers of interest rate reduction for those customers who choose to service some or all of the monthly interest:
- If servicing >0.01% of the monthly interest amount: 0.00% reduction
- If servicing 25.01% + of the monthly interest amount: 0.20% reduction
- All cashback is capped at £10,000 for J1-J5
- J6 cashback is uncapped
LV= criteria changes
With effect from 1 October, LV= will no longer be accepting age restricted/sheltered accommodation properties on either our Lump Sum+ or Drawdown+ Lifetime Mortgages.
For any existing Flexible Lifetime Mortgage or Drawdown+ Lifetime Mortgages which have already completed, the drawdown facility will continue to be available subject to the T&Cs of the relevant plan. LV= will accept new Drawdown+ applications in respect of age-restricted/sheltered accommodation up to and including 30 September, and those drawdown facilities will continue to be made available subject to the current T&Cs.
With effect from 1 October LV= will also be unable to consider any non-contractual further advances on any age restricted/sheltered accommodation property. In addition an existing policyholder won’t be allowed to port their mortgage across to an age restricted/sheltered accommodation property.
Lender update with Pure Retirement
Watch the latest updates from Pure Retirement in a webinar hosted by Craig Faulkiner, with Jane Foreshaw from Pure.
Pure’s Classic min property value change
From Friday 25 September, Pure Retirement is reducing the minimum property value on the Classic range from £150k to £125k.
The minimum property value for ex-local authority properties will remain at £150k.
Pure’s Sovereign rate change
From Friday 25 September, Pure Retirement is reducing interest rates to Sovereign Core and Sovereign Elite range on products A, B and C.
New rates from 2.25% MER.
Products D,E and F will remain unchanged on the Sovereign Core range.
Pure retirement rate change
From 24 September, Pure Retirement is reducing interest rates to the Classic range.
New rates from:
- Super lite - 2.23% MER
- Super Lite Plus - 2.24% MER
- Lite - 2.27% MER
Pure Retirement ‘Back to School’ series
Webinar with e.surv and Silver Travel Advisor
When: 30 September at 10-11am
Richard Sexton, Business Development Director at e.surv will be discussing “Valuations moving forward”
Debie Marshall, Founder at Silver Travel Advisor will be discussing “Habits of the over 50’s”
Registration now closed
Aviva rate change
From Wednesday 23 September 2020, Aviva is making changes to the interest rates on both the Lifestyle Lump Sum Max and Lifestyle Flexible Option, on new business only.
The ERC’s Autumn 2020 Market Report
The Equity Release Council has released the Autumn 2020 Market Report; here’s the key findings.
- Equity release market continues to evolve with average interest rates reaching historic lows
- Average rates for equity release products reached record lows of 4.11% in July 2020, with over half of products offering a rate of 4% or lower, and a fifth offering rates below 3%
- Equity release rates fell further than other personal borrowing products such as mortgages, personal loans, credit cards and overdrafts, over both a one and two-year period
- Product choice for consumers was up 29% from July 2019 and by 88% since the start of 2019, despite a 5% reduction in product numbers from 401 to 379 between January and July 2020
- Impact of Covid-19 felt in Q2, as the first half of 2020 saw an overall 14% drop in customer activity from the same period last year and a 15% drop in new plans agreed
- Recent ONS data shows more than one in three (37%) people aged 65+ are worried they will not be able to maintain their living standards in retirement
- The ONS data also shows more than a third (39%) of baby boomers (aged 65+) believe property would make the most of their money in retirement
Aviva launches new adviser website
Aviva has launched a new adviser website, connect.avivab2b.co.uk.
You can log in using your ten digit Online Account Number (OAN) and password. If you use Unipass, login as usual as it will have this information stored.
If you have any problems logging in, you can contact Aviva’s Online Support Team via email ECSD@aviva.com.
Pure Retirement SEO Masterclass and ERC webinar
When: 23 September, 10-11am
Pure Retirement will host the third in the series of Back to School Webinars, joined by:
- Martha Phillips, Director at Source Marketing Agency
- Chris Pond, from the Equity Release Council.
Registration now closed
Pure Retirement rate change
Pure Retirement is reducing interest rates on the Classic range from 16 September. New rates from:
- Super Lite Plus –2.27% MER
- Lite Plus – 2.38% MER
- Midi – 2.54% MER
- Max Plus – 3.15% MER
LV= rate change
From Tuesday 15 September, LV= is decreasing the rates on Drawdown+ Lifetime Mortgage. New rates from 2.46% MER.
The zero application fee deal remains in place for all applications.
Rates for the Lump Sum+ Lifetime Mortgage remain unchanged.
Hodge relaunches Holiday Let
Hodge is re-launching its Holiday Let range on Monday 14 September with its full complement of products.
Pure Retirement webinar ‘The Unplaceables’
When: 16 September, 10-11am
Jane Forshaw and Daniel Edmondson at Pure Retirement will host the second in the series of Back to School Webinars ‘The Unplaceables’, joined by:
- Matthew Taylor, Senior Business Relationship Manager, at Equilaw
- Jane Hanlon, Mortgage Club Manager at Advise Wise
Registration now closed
Mortgage Solutions Equity Release Awards 2020
It would be a privilege if Advise Wise could secure your vote this year.
Please vote for Advise Wise as Best Distributor for Development & Support.
L&G launches RIO
Legal and General Home Finance is launching a new Retirement Interest Only Mortgage (RIO) on the 9 September.
RIO is an interest-only mortgage with a fixed interest rate for life. If a client’s existing interest-only mortgage is coming to an end, they could use the RIO to pay the outstanding balance and stay in the home they love. Some may choose to borrow extra cash to buy a new home - or just do more of the things they love in retirement.
You can find more about RIO on L&G’s dedicated page, which includes useful tools and support resources for advisers.
Just rate changes
As from Wednesday 9 September, Just is decreasing the interest rates on J2, J2.5, J3, J4, J6 and Green LTV series. Just is also introducing Cashback on J6 LTV series. New rates from:
- J2 - 3.18% MER
- J2.5 - 3.64% MER
- Green - 3.54% MER
- J3 - 4.25% MER
- J4 - 5.08% MER
- J6 - 5.40% MER
Pure Retirement Heritage range rate change
On Saturday 5 September, Pure Retirement is reducing rates on part of the Heritage range:
- Heritage Plus - new rates from 3.95% MER
- Heritage Max - new rates from 4.11% MER
- Heritage Max Plus - new rates from 4.65% MER
- Heritage Freedom 40 products - new rates from 4.25% MER
The rate reduction applies to both GILT based and Fixed ERC products, along with the Heritage Freedom 40 products (Plus, Max, Max Plus).
Aviva rate change
From Friday 4 September, interest rates on both Lifestyle Lump Sum Max and Lifestyle Flexible Option will increase or remain the same, on new business only.
- For new business applications received between 4 - 10 September, the offer issued will be based on the Personal Quote Summary (PQS) received, as per normal Flex Tool rules.
- All new business applications received from Friday 11 September will be processed using the new interest rate.
- If the property valuation is outside 10% of the estimate, please include a new PQS using Flex Tool version 04.09.20.
- If the property valuation is within 10% of the estimate, please include the original PQS.
- Where terms have been offered and the customer wishes to make an alteration to the loan, the new offer will be based on Flex Tool version 04.09.20
- From Friday 4 September, Aviva will only accept a PQS dated 01.09.20 & 04.09.20.
There are no changes to the interest rates on reserve release.
Pure Retirement - Classic rate change
Pure retirement is reducing interest rates on all Classic products from Friday 4 September. New rates from 2.26% MER.
Just rate change
As from Thursday 3 September, Just will be decreasing the interest rates on J5 LTV series, while increasing interest rates on J1 LTV series for customers aged 70 and above.
- For customers who choose to take the option of a cash facility, there will be a 0.05% increase to the MER rates (in order to then calculate the AER rates, you need to add the 0.05% increase to the MER first)
- There are two tiers of interest rate reduction for those customers who choose to service some or all of the monthly interest:
- If servicing >0.01% of the monthly interest amount there will be a 0.00% reduction
- If servicing 25.01% + of the monthly interest amount there will be a 0.20% reduction
- All cashback is capped at £10,000
ERC appoints first legal representative to its Board
The Equity Release Council has broadened its industry representation by appointing the first legal member to serve on its main Board.
Claire Barker, Managing Director at Equilaw Ltd and Director at Thomas Legal Group, has taken up her new post as a co-opted board member for 2020/21, following a competitive selection process among the Council’s legal membership.
Claire’s appointment will ensure the property law sector has a seat at the highest level of the Council as a representative body.
L&G rate change
On Wednesday 2nd September at 6pm, L&G is reducing interest rates by up to 0.20% across all products.
You can find more info and the new rates in the product summaries
Canada life rebrand
Canada Life introduces a refreshed brand to the market; changes start with a new look, new logo and brand new website. All designed to make it more accessible, transparent and easy to deal with.
Check the new website www.canadalife.co.uk
Hodge “Let’s chat lending” webinars
When: 24 September at 11am
20 minutes webinar with a member of Hodge senior underwriting team and Emma Graham, Sales director.
The topic of the webinar is affordability criteria and brokers will get an understanding of the thinking behind Hodge underwriting approach and what Hodge needs from brokers and their customers to turn their application into a decision.
Registration now closed
Aviva product enhancements
From Tuesday 1 September, Aviva is making the following changes:
For new Business on Lifestyle Lump Sum Max & Lifestyle Flexible Option:
- The introduction of a new 14 week guaranteed re-offer period following an initial 14 week guaranteed offer period, providing you with a total guaranteed offer period of 28 weeks.
- Extending the validity of the valuation report to 28 weeks bringing this in line with the new 28 week guaranteed offer period.
- The introduction of Edition 7 Terms & Conditions (T&Cs) to support the new re-offer and valuation changes.
- Increasing LTV rates used to determine the maximum a customer can borrow.
For additional Borrowing on Lifestyle Lump Sum Max, Lifestyle Flexible Option and products closed to new business:
- Increasing LTV rates used to determine the maximum a customer can borrow
- New LTVs will also apply to Moving Property, Change of Ownership and Sale of Land to calculate whether a part repayment is required.
LV= rate change
LV= is reducing interest rates on both Lump Sum+ and Drawdown+ from Wednesday 26 August.
LV= is also removing the Application fee of £695 from its Lifetime Mortgage Drawdown+ product.
Pure Back to School September Webinar Series
Pure Retirement has launched a series of weekly webinars throughout September, with a wide range of guest speakers.
- 9/9 - Persuasion skills in a virtual world
- 16/9 - The Unplaceables webinar
- 23/9 - SEO Masterclass
- 30/9 - Valuations after Covid and Habits of the over 50’s
Registration now closed
Pure’s FAQ Sessions
The first instalment of Pure’s FAQ Sessions is live! Pure Retirement’s BDM for the North, Daniel Edmondson, is kicking off the series as he explains digital applications in a short clip.
The FAQ Sessions will be posted fortnightly.
Just introduces J6, its highest standard LTV’s
Just launches a new LTV neries, J6 from Monday 24 August.
J6 offers Just’s highest LTV’s on a non-enhanced basis allowing customers access to one of the highest releases available in the current LTM market.
Key features:
- Available on lump sum basis only
- Available to 65-95 age range
- Min property value £150000
- Interest rate from 5.85% MER
- No cash facility and no monthly payment options
Full details on Just At a Glance Guide
Just changes J4 and J5 LTV’s
On Monday 24 August, Just is making slight reductions at four ages on J4 and J5 LTV’s on a single life basis only.
The LTVs applicable to J5 will also be reducing. You can run a product search on Advise Wise Platform to understand the maximum loan amount available based upon their medical and lifestyle conditions.
Just changes its monthly payment option
From Monday 24 August, Just is changing its monthly payment option, simplifying its current tiers of reduction to the roll up interest rate for those who wish to pay some or all of their monthly interest.
- Servicing less than 25% of the monthly interest amount - no reduction to the standard roll-up interest rate
- Servicing >25.01% of the monthly interest amount - 0.20% reduction to the roll-up interest rate
Check the full breakdown of the rates.
For those quotes in the pipeline servicing between 75.01%-100% interest and receiving a discount of 0.30% to the roll-up interest rate, applications must be received by Monday 7 September in order to hold the rate.
Pure Retirement launches postcode tool
Pure Retirement has launched a new postcode finder tool, aimed at making it easier for advisers to find their regional sales representative.
2020 Women’s Recognition Awards Finalists Announced
The finalists for the 2020's Women’s Recognition Awards have been announced.
Jane Hanlon, our Mortgage Club Manager, has been named a finalist in the Woman in Later Life Lending category. To view all the FRWRA finalists, click here.
Congratulations to Jane for this well deserved achievement!
Tune in to the Women's Recognition Awards Twitter page on Thursday 27th August at 1pm where they will reveal the winners!
Live webinar with Advise Wise and LV=
When: Tuesday 25 August, 10.00-11.00am
This live webinar is co-hosted by:
Craig Faulkiner – Head of Distribution at Advise Wise
Chris Smyth – National BDM at LV=
The webinar will cover LV= quote system and an overview on the newly launched Drawdown+ product and provides 1 hour of unstructured CPD.
Registration now closed
OneFamily live webinars
OneFamily is running free webinars in August on Underwriting, its Lifetime Mortgage proposition and its portal training.
To check all events dates and register click here.
Canada Life Capital Select Options live webinar
When: Thursday 20 August, 11am-12pm
Hosted by Les Pick, Head of Sales, Home Finance, the webinar explores the Capital Select options product range, the flexible underwriting approach and Canada life customer service.
The webinar provides 1 hour of unstructured CPD.
Registration now closed
Legal & General product changes
L&G is changing LTV's on Black to Green Flexible and Optional Payment Lifetime Mortgages from Thursday 20 August at 6pm. There will be no changes to the LTVs for the rest of the range.
Check the product summaries below for more info:
- Flexible Lifetime Mortgage Product Summary
- Optional Payment Lifetime Mortgage Product Summary
- To see a detailed list of changes check the New LTV Structure
Hodge updates property criteria
Hodge has released its updated property eligibility criteria. View the quick reference guide here.
Pure Retirement rate change
From 12 August, Pure Retirement are reducing rates on the following products:
- Classic Super Lite New rates from 2.28%
- Super Lite Plus New rates from 2.30%
- Lite New rates from 2.33%
- Lite Plus New rates from 2.45%
- Max New rates from 2.87%
Pure Retirement are also re-opening their Max Plus product.
LV= rate change
LV= is reducing the rates on the Lump Sum+ Lifetime Mortgage from 12 August. New rates from 2.58% MER.
Hodge criteria change
Hodge is making changes to its acceptable property criteria, due to go live on 10 August.
Aviva rate change
From Monday 10th August, interest rates will decrease or remain the same for Aviva products.
Additional borrowing interest rates are decreasing by 0.20% on the Lifestyle Flexible Option, Lifestyle Lump Sum Max and all products closed to new business.
New Just webinar series on retirement advice
Just is introducing a brand new webinar series with a host of expert guests, giving you in-depth knowledge and insight to key retirement advice principles.
Registration now closed
Just rate change
Just is decreasing interest rates on J2, J2.5, Green, J3 and J4 LTV series from 6 August. New rates from 3.29% MER.
LV= launches new adviser online portal
LV= launches a new adviser online portal; a simple to use and intuitive online experience that provides 24/7 access, full application progress tracking, safe storage of all clients’ documents and instant access to literature documents.
LV= launches Lifetime Mortgage Drawdown+ products
LV= launches its Lifetime Mortgage Drawdown+ products from 5 August, with rates from 2.65% MER.
FCA best practice guidance to protect vulnerable consumers
The FCA has set out new best practice guidance for firms to do more to protect vulnerable consumers.
Pure Retirement “Unplaceables” Zoom webinar
When: 12 August 10.00-11.30am
Hosted by BDM Anna Thompson, with:
Craig Faulkiner – Head of Distribution at Advise Wise
Hattie Tales – National Account Manager at Pure Retirement
This webinar is all about hard to place cases, and the aim is to discuss your real life cases during the session. Please get in touch if you have a case you would like to discuss.
Registration now closed
If you would like one of your cases discussing, email marketing@pureretirement.co.uk.
Pure Retirement rate change on Heritage range
Pure Retirement is reducing interest rates on its Heritage Core Range and Heritage Freedom 40 products, both GILT based and Fixed ERC products.
New rates from 3.45% MER.
Pure Retirement rate change on Classic range
Pure Retirement has reduced interest rates to the Classic range, from Saturday 1 August. New rates from 2.30% MER.
L&G interest rate change
Legal & General Home Finance is decreasing interest rates by up to 0.18% across all of its products from 6pm 30 July. New rates from 2.37% MER.
Hodge Tech Series - The Changing Threat Landscape
When: 5th August 2020, 10.00 - 11.00am
Speakers:
Damon Rands - Founder, Wolfberry Cyber
Professor Pete Burnap - Professor of Data Science & Cybersecurity, School of Computer Science and Informatics, Cardiff University
In this session you will hear from leading experts in the field of cyber security and data science to better understand why the ‘traditional network’ no longer exists. And how working from home, returning to the office and the use of fear affects the safety of businesses online infrastructure.You will also hear about the use of AI in helping prevent cyber attacks and risk.
This session is certified by the CIPD and will provide 1 hour of CPD credits to all attendees.
Registration now closed
ERC : Q2 2020 equity release market statistics
The Equity Release Council released Q2 2020 equity release market statistics.
In summary, the figures show:
- £698m of property wealth was accessed by older homeowners in Q2 2020, down by 34% from the previous quarter.
- The number of new equity release plans agreed between April and June also declined by 34% from 11,079 in Q1 2020 to 7,341.
- May was the quietest month for new plans before initial signs of recovery followed in June as lockdown conditions began to ease.
Pure Retirement webinar - Facebook Masterclass
When: 29 July, 10am
Hosted by Jane Forshaw, BDM at Pure Retirement, with guests:
- Marths Phillips, Director at PR Agency Source
- Robert Bowes, UK Product Manager at Iress
- Nicola Malone from Premier Equity Release Club
To sign up for this webinar, please email marketing@purertirement.co.uk
Physical valuations in Leicester area
e.surv will be re-commencing physical valuations in the Leicester area with effect from this Friday 24 July.
Pure Retirement rate change
Pure Retirement is increasing interest rates on Sovereign F product from 23 July.
New rates from 5.52% MER.
Pure Retirement is also decreasing interest rates on Classic Midi, Midi Plus and Max products from 23 July. New rates from 2.69% MER.
LV= rate change
LV= is reducing the rates on the Lump Sum+ Lifetime Mortgage from 22 July. New rates from 2.60% MER.
Pure Retirement re-introduces Sovereign Elite products
Pure Retirement re-introduces Sovereign Elite products from 22 July, with rates from 2.85% MER.
Pure Retirement is also introducing a criteria change:
- Maximum loan size is now £1 million
- Referrals are accepted for loan sizes of £1million–2 million
Financial Reporter virtual roadshows
Hear straight from the lenders. Earn CPD. Stay connected - all without leaving your desk.
“Life after lockdown series” - Upcoming digital events:
- 22 July - What next for later life?
- 23 July - What next for later life?
- 6 August - Using technology to push forward
- 13 August - What next for specialist lending?
Registration now closed
Canada Life rate changes
Canada Life is reducing the interest rates on all Capital Select Options and Lifestyle Lite and Gold Options, from 21 July.
New rates for Capital Select Options from 3.05% MER and for Lifestyle Lite and Gold Options from 2.65% MER.
Canada Life is also increasing the LTVs on all Capital Select Options.
Pure Retirement rate change
Pure Retirement is also reducing rates on the Classic range, from 21 July. New rates from 2.32% MER.
Just introduces Just For You Green Lifetime Mortgage
Just introduces the Just For You Green Lifetime Mortgage from Monday 20 July.
This innovative product provides customers with a lower interest rate if their property has a valid Energy Performance Certificate (EPC) rating of A or B. It’s available on the new J2.5 LTV series and has the same loan-to-values as J2.5 but reduces the standard interest rate by 0.10%.
The EPC must be submitted at the application stage and Just will contribute £50 to the cost of a certificate. To check whether the property has a valid EPC and find details of a Domestic Energy Assessor to obtain an EPC, please refer to the EPC register.
Aviva rate change
Aviva is changing interest rates on Lifestyle Lump Sum Max and Lifestyle Flexible Option from 20 July.
Pure Retirement rate change
Pure Retirement is reducing interest rates on Sovereign Range on products A,B and C from 16 July. New rates from 2.35% MER.
Products D,E and F will remain unchanged.
Financial Reporter women's recognition awards
The Advise Wise team has put Jane Hanlon forward for "Woman in Later Life Lending" in the Financial Reporter women's recognition awards, for the amazing work she is doing in running Advise Wise Mortgage Club and supporting advisers.
You can write a brief nomination for Jane, too!
Power of 8 event
When: 23 July, 10.00am
Hosted by Hattie Tales at Pure Retirement, with Dan Berrisford at Leek United Building Society, Daniel Edmondson at Pure Retirement,
Samm Piper at Legal & General and Jane Hanlon at Advise Wise.
Registration now closed
LV= changes to lending policy
LV= is changing its lending criteria for Lump Sum Plus Lifetime Mortgage, effective from 8 July.
- The Minimum property value is £100k.
- Second homes are no longer acceptable. The property must be the applicant's main residence.
- Leasehold properties are acceptable if the remaining lease is equal to or greater than 175 minus the age of the youngest borrower.
Pure Retirement rate change
Pure Retirement is decreasing interest rates on all Classic products (Super lite through to Max) from 9 July. New rates from 2.36% MER.
Classic Max Plus, Super Max, Super Max Plus and Elite Range will all remain unavailable for New Applications and Further Advances
Pure Retirement “The Unplaceables” webinar
When: 15 July 10.00-11.30am
Hosted by BDMs Jane Forshaw and Anna Thompson, with guests Jane Hanlon - Mortgage Club Manager at Advise Wise and Brendan Gilligan - Head of Products at Pure Retirement.
The webinar is all about hard to place cases.
To register email marketing@pureretirement.co.uk
Just rate change
Just is decreasing interest rates from 10 July on J1, J2, J2.5, J3 and J5 LTV series from Friday 10 July. New Rates from 2.80% MER.
Canada Life product changes
Canada Life is reintroducing Lifestyle Gold Plus and Prestige Options from Tuesday 7 July.
Canada Life is also increasing the interest rates on Lifestyle and Lifestyle GOld and increasing the LTVs on Lifestyle Lite and Lifestyle Gold.
Pure Retirement rate change
Pure Retirement is reducing interest rates on the full Heritage range, including Freedom 40, from Wednesday 8 July.
New rates from 3.53% MER.
ERC live Q&A webinar with Clive Betts MP
When: Tuesday July 14, at 10:30am
Council chairman and former MP, David Burrowes, will be the host for a live interview with Clive Betts, Chair of the housing, communities and local government select committee.
The pair will discuss the role of the select committee in relation to equity release as well as the challenges facing the housing market.
Registration now closed
Aviva local lockdowns update
For areas with localised lockdown, Aviva will continue to accept physical valuation applications which will be placed ‘on hold’ in readiness for the restriction to be lifted.
If the customer wishes to proceed with a remote valuation then the Adviser will be required to provide Aviva with a new Personal Quote Summary.
In response to the extended localised lockdown in Leicester, e.Surv has suspended all physical property inspections in any impacted postcodes with immediate effect, and until further notice.
From 6 July e.Surv is able to resume physical inspections in England where the occupier(s) is shielding and is willing/able to wait outside of the property at the time of inspection.
L&G rate change
L&G is reducing interest rates on all products except for the Violet variant, from 7 July. New rates from 2.40% MER.
LV= withdraws flexible Lifetime Mortgage
LV= removed its Flexible Lifetime Mortgage product for new business as of the 30 June 2020. The cut-off date for new applications to be sent in is the 14 of July. LV= will honour any applications that have been submitted but have not yet completed, however they must complete by the end of September 2020.
Pure Retirement reduces rates on Classic range
Pure Retirement is reducing interest rates on the Classic range from 4 July.
New rates: Lite plans from 2.52% MER, Midi plans from 2.83% MER and Midi Plus plans from 3.02% MER.
Hodge changes criteria on listed buildings
Hodge has changed some of the criteria on its Equity Release range and it will no longer accept any listed building on any of its products.
Changes to Pure Retirement Sovereign range
Pure Retirement is reintroducing the full Sovereign Range (A,B,C,D,E, and F products) and removing the current AA, BB and CC products from Friday 3 July.
New rates across the full Sovereign range from 2.42% MER.
All applications on the AA, BB and CC products will need to be submitted by 4.30pm Thursday 16 July.
ERC expands advisers checklist
The Equity Release Council expands the adviser checklist from 12 to 24 points, including an extra focus on vulnerable and remortgaging customers as well as those consolidating debt.
This updated checklist captures the most important points to cover from FCA regulations and Equity Release Council Standards.
Hodge returns to physical valuations in Wales & Scotland
Hodge is now able to do physical valuations in Wales and Scotland, following the same procedures adopted for England.
Across its later life lending interest only range, Hodge has also:
- Removed the LTI restriction of 4.5 x income for like-for-like re-mortgages, taking it back up to 6 x income.
- Re-introduced the consideration of earned income up to the age of 80 for affordability.
- Re-introduced 70% LTV, up to a maximum loan of £1m and property value of £2m.
Canada Life onsite valuations in Scotland and Wales
Canada Life recommences onsite valuations in Wales with immediate effect and in Scotland on 29 June.
Canada Life will be extending our dual approach to valuations:
- Onsite valuations will be instructed in England, Scotland and Wales, across all product lines
- If an onsite valuation can’t be completed, a remote valuation will be instructed. For example, if your customer is not comfortable with an onsite valuation being conducted
LV= resumes physical valuations in Scotland & Wales
As of Monday 29 June, LV= will be able to instruct physical valuations in both Scotland and Wales.
This is for pipeline cases already submitted as well as new business applications. LV= will commence with instructing the pipeline cases from Monday 29 and should have every case instructed by Friday 3 July.
Just launches new J2.5 product variant
As of Monday 29 June, Just is launching a new product variant, J2.5.
- It shares the same criteria as J3
- Interest rate from 4.13% MER
- Min advance £10,000
- For customers who choose to take the option of a cash facility, there will be a 0.05% increase to the MER rates (in order to then calculate the AER rates, you need to add the 0.05% increase to the MER first)
- There are four tiers of interest rate reduction for those customers who choose to service some or all of the monthly interest:
| Monthly interest | Rate reduction |
| >0.01% | 0.01% |
| >25.01% | 0.10% |
| >50.01% | 0.15% |
| >75.01% | 0.30% |
This new product is available to source and request a KFI via Advise Wise immediately.
Virtual Power of 8 event on Thursday 2 July at 10am
Industry Panel Debate covering all the recent hot topics, with...
- Jane Benjamin Director of Mortgages at Sesame Bankhall Group
- Craig Hall Head of Broker Relationships at Legal & General
- Jeremy Duncombe Deputy Chair of IMLA
- Phil Bailey Sales Director at Twenty7Tec Group
- David Burrowes Chairman at Equity Release Council
To register email Paul Lewis or Nadine Edwards.
ERC webinar on cloud based solutions and security
When: Thursday 2 July at 11am
The Equity Release Council's IT expert, Jamie Lakes, will set out what ERC members need to know about cloud based solutions and online security in the era of COVID-19 and increased remote working.
Registration now closed
Pure Retirement valuations update for Scotland & Wales
Pure Retirement goes back to full valuations in England, Scotland and Wales for all 3 product ranges: Heritage, Sovereign and Classic full physical valuations are now available in Scotland and Wales as well as in England.
Pure Retirement will still be able to conduct a desktop valuation when an internal inspection is not deemed appropriate by the customer or surveyor.
Pure Retirement reduce rates on its Classic range
Pure Retirement is changing interest rates on its Classic range from midnight on 24 June. New rates from 2.38% MER.
Pure Retirement is also making the Classic Midi, Classic Midi plus and Classic Max products available again.
Aviva decrease rates on both Lifestyle products
Aviva is decreasing interest rates on both Lifestyle Lump Sum Max and Lifestyle Flexible Option on new business only, from 26th of June.
There are no changes to the interest rates on reserve releases.
Equity Release Council publish checklist for advisers
The Equity Release Council has published a Checklist for Advisers, to provide direction when advising customers on equity release. It covers the most significant points to consider in the advice process and when you’re assessing the customer’s suitability.
New industry guidance published by the FCA
The FCA has published key findings from their review into equity release, with actions for firms and guidance for customers.
Although the FCA found equity release to be working well for many consumers, they raised areas of concern.
The FCA findings highlight the importance of understanding your client. They have recommended:
- Getting to know your client so you can obtain sufficient information;
- Ensure advice is personalised for each individual clients circumstances;
- Collect and retain evidence to support the suitability of your advice.
Rate changes and deadlines table
View the tableAdvise Wise in the press
- Advise Wise introduces primary surveyor information enhancing adviser support in later life lending Published: 17 September 2024
- Advise Wise introduces affordability tags to enhance Consumer Duty compliance and improve customer outcomes Published: 11 September 2024
- Advise Wise introduces API integration with Canada Life Published: 31 July 2024
- Advise Wise adds Newbury Building Society Retirement Interest-Only (RIO) plans to its platform Published: 13 June 2024
- Advise Wise appoints Aaron Conlon as Managing Director Published: 21 May 2024
Missing information?
Please email any lender/solicitor updates to our dedicated mailbox.
