Pure Retirement launches
The provider also unveiled its new ‘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 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; which makes the plan more competitive than products with lower LTVs and without the need for medical underwriting.
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.
The plan also offers highly competitive commission deals to advisers, and future drawdowns will also be subject to commission payments.
Pure Retirement has already confirmed its membership of the Equity Release Council and will adhere and be accountable to its professional Code of Conduct.
The company aims to become one of the leading providers in the equity release industry – and believes this can be achieved through combined knowledge and expertise of its management team, alongside its ability to bring fresh new products to market quickly.
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”.
Debbie Ross, equity release specialist at The Mortgage Partnership, added: “The combination of higher Loan to Values in the Pure Drawdown product, the low set up costs and help towards fees will suit my clients’ circumstances exactly.
“At The Mortgage Partnership we are seeing an increasing requirement for Equity Release and more varied products to suit individual needs. With that in mind, I can see that Pure Retirement will have a strong place in the Equity Release Market, leading the way for more innovative products.”