By Sarah Emerson, Head of Commercial and Data
The team who create and manage our Co-op Insurance products have been working on something new. We're excited to announce that we're launching two new personal finance products, in partnership with leading financial services provider, Legal & General.
From speaking to our members, we know they're interested in Lifetime Mortgage products. These products are sometimes called 'Equity Release' and offer a way for homeowners over the age of 55 to access loans secured against equity in their homes.
So, as part of this trial, we're excited to launch two new products:
- Lifetime Mortgages – a type of Equity Release allowing homeowners to take out a loan secured against their home whilst still owning it. The loan is usually repaid when the last borrower passes away or moves out of the home into long-term care
- Retirement Interest Only (RIO) Mortgages – a loan based on the value of a home and requires interest payments to be paid
These products allow people access to tax free cash without having to move out or sell their family home. This could be especially useful now, helping families maintain or improve their lifestyle as the cost of living rises.
People exploring these products might want to fix up their homes, take a once in a lifetime holiday or help support their families. For instance, offering a way for older generations to support their families in buying a home, with an early inheritance at the time it's most needed.
Why are we launching this product now?
Research from the Equity Release Council shows the number of people using this type of product has risen by 20% in the first part of this year. It can be hard to know which provider to choose as there are so many out there. Our customers and members want to know who they can turn to and trust to do it right.
Offering a wider range of financial services products at a time when our members and customers need them most is a new and exciting way to contribute to the Co-op vision, Co-operating for a Fairer world.
In our Insurance business, we create partnerships with trusted experts in the market and this new product was designed in this way. We've partnered with Legal & General to launch a product we can confidently recommend. Legal & General customer advisers don't work on a commission basis, and they are committed to getting the right outcome for customers. They encourage all family members to be involved in key decisions.
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