“The new Nationwide Lifetime Mortgage will enable those with equity in their home to access their capital and use those funds flexibly to meet a range of needs. We welcome the FCA consultation on later-life borrowing and we hope this will spark further innovation in this sector going forward.”
Adviser view
Kevin Woods, an adviser at The Right Equity Release, said: “Equity release is a growth area because of all the interest-only mortgages coming up to maturity. Building societies are now taking action because borrowers are not able to pay off interest-only mortgages.
“Equity release is a solution for older clients who may want to help their grandchildren get on the property ladder.
"It will be good to have more lenders enter the market, but it is a specialist market. The rates I have seen from Nationwide appear to be equivalent to what is out there already.”
Charges
No product, valuation or advice fees.
Verdict
Although there are already several lenders in the equity release market, a high street group such as Nationwide is bound to raise the respectability of a sector that has had a troubled past. Advisers will certainly welcome more competition in the market.
Ima Jackson-Obot is features writer at Financial Adviser
