New equity release provider Pure Retirement has launched to market. It is a sister company to Age Partnership, the retirement specialists.
It has unveiled the ‘Pure Drawdown Plan’, the first product in a range that will be built this year as part of its new entry into the equity release market.
The firm says the Pure Drawdown Plan has been designed following extensive consultation with intermediaries. It is a High Loan to Value (LTV) lifetime drawdown scheme, available to retirees over the age of 70. The plan’s LTV ratios begin at 36%, rising to 45% at age 78 after which ratios are capped with no upper age limit.
The product’s key features are as follows:
• No medical requirements
• Fixed interest rate for life (fixed at time of cash advance)
• No maximum release (based on LTV)
• Minimum release £25,000
• £5000 minimum drawdown from any remaining cash facility
• Properties over £1,000,000 accepted
• Fully accredited by the Equity Release Council
• Available in England, Wales and Scotland
For loans over £45,000 there is no arrangement fee and Pure Retirement will contribute £600 to clients’ solicitors fees and £500 to adviser fees.
Pure Retirement is also offering free valuations on properties up to the value of £500,000 and refunded valuation fees for properties valued between £500,000 and £1,000,000.
Pure Retirement has confirmed its membership of the Equity Release Council and will adhere and be accountable to its professional Code of Conduct.
Paul Carter, managing director of Pure Retirement, said: “The equity release market has moved forward into 2014 with a fresh bout of vitality; however we believe our innovative new offer will inject the market with even greater energy.
“Quality equity release products are becoming increasingly vital in the face of stagnation from traditional sources of retirement finance and it is therefore the responsibility of all those within the industry to ensure the evolving needs of retirees are sufficiently addressed – if not exceeded. This is exactly our mantra in launching Pure Retirement and forms the backbone behind the new Pure Drawdown Plan.
“We are immensely proud to be the first new provider to enter the market for more than three years, and we are all hugely excited at the path lying before us in the months and years ahead. We anticipate that our launch will open the door for more prospective providers, which in turn will ensure the sustained health and growth of equity release market.”