GE Life "too expensive" despite reduction.(GE Life and Annuity Assurance Co.)(Brief Article)

Financial Adviser, July, 2005

GE LIFE has reduced its lifetime mortgage rate but it has still been branded too expensive by an IFA.

The reduction in its lifetime mortgage rate, from 6.69 per cent to 6.25 per cent is the second time GE Life, has cut the rate on its equity release lifetime mortgage in two months.

The product offers a typical APR of 6.4 per cent, with a minimum loan value of AGBP25,000. Compound interest is calculated annually.

There is a AGBP230 valuation fee, a AGBP450 application fee and legal fees for the provider and client of AGBP350 each. The application fee is automatically deducted on the completion of a loan rather than an upfront charge.

A typical loan-to-value is 34 per cent for a client aged 75, and cashback of AGBP500 is available on...

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