An equity release program from Halifax offered through brokers, called the Retirement Home Plan was discontinued last week.  The offer was available to homeowners over the age of 65 years of age.  The borrower was able to release equity in their home by up to 75 per cent of the property’s value.  The borrower would then only pay interest repayments on the deal and capital would be paid off when they died and the house was sold.  Now that Halifax has pulled this product it is expected that they will revamp the product and reintroduce it in another offering better suited to today’s demands and market.

The Halifax Retirement Home Plan had stopped being offered by branches years ago and Halifax pulled the deal from intermediaries due to increased demand for the product according to Jon King, a managing director with More 2 Life.  He said, “It’s a product that in many ways stands alone in the field. The news that it’s been pulled will be particularly pertinent to brokers as it was not something that was ever offered in branches. I hope it prompts other funders to fill the gap as it’s an area of growing demand.”

A spokeswoman for Halifax, says: “We consistently review our product propositions and criteria to make sure they remain appropriate. The Retirement Home Plan is a niche scheme and therefore only represents a very small proportion of our business. This change ensures alignment across the Group.

“We have ensured that we are keeping options available for existing customers on the scheme, with the availability of products in the range for them.”