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Nationwide Looking at Ways for Parents to Pass Wealth on to Children

Nationwide says it is looking at ways for parents to pass their wealth on to their children.
The lender reported that it intends to remodel its mortgage plans and go into the equity release market, while it also wants to aid homeowners in unlocking wealth that is stuck in their property.
The Times says that the company is developing an access charge-free equity release product with no negative equity guarantee.
Group Retail Director, Chris Rhodes, said that the group is looking at how to ensure parents wealth is passed on to their children, however he admitted that such a product is not due to be launched in the immediate future.
He added that they were working hard to find a solution to the problem, of which there is a definite customer need, and that they were still in the development and research phase.
Technical Director at Key Retirement, Dean Mirfin, said that he welcomed Nationwide’s acknowledgement of the growing role of parents and grandparents in ensuring that their children and grandchildren are able to make their way onto the property ladder, one of the most popular uses of equity release.
Meanwhile, Retirement Advantage’s Product and Communications Manager, Alice Watson commented that Nationwide is correct in stating the importance of developing safe and secure products.
However, she said that there are already a range of products in the equity release market that offer comfort, safety and flexibility to customers.
She added that many people’s conception of the equity release industry is outdated, often from over a decade ago, and are sceptical about its viability for today’s retirees. She said that, conversely to this opinion, it is an industry that has matured and grown at a very fast rate.
She concluded by saying that the equity release market is a well planned and proactive choice of income for over-55s across the UK and that it should no longer be regarded as a ‘last resort’.

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BDC 317 : Jun 2024