Northern Rock waves Pru bye.(Prudential)(Brief Article)

Financial Adviser, May, 2005

Prudential is splitting from Northern Rock to launch its own lifetime mortgage product.

After two years of selling Northern Rock's lifetime mortgages under the Pru brand, the company has decided to take advantage of the growing lifetime mortgage market and will launch its own product in the autumn.

Ali Crossley, director of lifetime mortgages, said the company had interviewed IFAs and found that 57 per cent had yet to sell a lifetime mortgage. A quarter of those said they would do so in the next 12 months. According to Ms Crossley, with the savings gap in the market and customers using the equity in their homes to fund retirement, there was opportunity for lifetime mortgages to grow from AGBP1bn business today to AGBP6.8bn in 2008.