Newlife says that the rebrand was made to reflect its business strategy as it expands into a broader range of home-related finance products which includes the launch of two home reversion plans.
The first of the two home reversion products is called the Optimum home reversion plan which has a minimum release of £25,000 and a maximum of £250,000 and allows 100% of the property to be sold.
The second is the Options home reversion plan which has a minimum release of £25,000 or a minimum release based on the sale of 25% of the property value, whichever is lower, up to a maximum of £250,000. Between 25% and 95% of the property may be sold under the Options plan.
Peter Lucas, chief executive of Newlife, said: “We are pleased to be in a position to rebrand as Newlife – home related finance, as this better represents our offering as well as our aspirations for growth. The home reversion facilities that we are launching today as part of our rebrand, is the first in a series of new products and we look forward to better servicing our customers and intermediary partners.
“The extension of our portfolio enables us to provide a more comprehensive offering, and meet a wider range of financial requirements. We deal exclusively through intermediaries and our new home reversion plans have been developed in response to feedback from advisers. This enhances our offering in the equity release sector and demonstrates our long-term commitment to this growing market.”
Fellow Safe Home Income Plans member Bridgewater Equity Release, responded to the launching of Newlife’s home reversion plans.
Peter Welch, head of sales and distribution at Bridgewater Equity Release, said: “It is vitally important for the overall equity release market that we have a fully-functioning, competitive home reversion sector and therefore we welcome Newlife’s first foray into reversions with these two new products.
“Increased product choice and a greater focus on reversions from both providers and advisers alike helps project the sector in a brighter light, delivers confidence and certainly offers clients a much more rounded choice of equity release options.
“In these economic times with house price fluctuations, reversions are often a more suitable equity release option, particularly for those individuals who want certainty and do not want rolled-up interest products. There is also the advantage with reversions that clients can be sure of leaving a legacy if they do not release 100% of their home’s value. This is not the case with lifetime mortgages where the final debt is unknown at the time the product is taken out.
“We believe that there are many individuals who would find a home reversion product a much more suitable way to release equity from their home. We would therefore urge advisers to look at Newlife’s offering and other products in the sector to make sure they have the necessary knowledge and expertise to recommend the right product for their client.”