Northern Rock Withdraws Equity Release Mortgages

Nationalised bank Northern Rock has reportedly withdrawn from the equity release market, due to a lack of demand for lifetime mortgages at the lender.

Northern Rock will honour all existing applications for equity release, Mortgage Strategy reports, and said that terms and conditions already in place for  lifetime mortgages will continue to apply.

Northern Rock director of marketing Anth Mooney told MoneyMarketing: “Our revised mortgage range is in line with our low-risk appetite and competitive framework arrangements.”

The news of Northern Rock’s withdrawal follows the announcement last week that Saffron Building Society will also withdraw equity release from its product range by the end of the year.

This year has also seen Newcastle Building Society and Coventry Building Society suspend equity release lending.

Commenting on the announcement, a spokeswoman for Northern Rock said: “Northern Rock regularly review its products and services to make sure they are meeting customer needs,” Mortgage Strategy has reported.

“Lifetime mortgages in particular have seen little consumer demand and are no longer seen to be part of our core product range.”

But, she added: “Lenders also have to take into account what is happening with their peers and so other lenders withdrawing from the sector probably would have been a factor in the decision.”

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