Godiva rides into equity release market

Godiva Mortgages, the intermediary arm of the Coventry Building Society, has entered the equity release market with a range of lifetime mortgages.

The range includes lump sum and drawdown products and Godiva is the first lender to offer an option with no early repayment charges.

Colin Franklin, managing director of Godiva Mortgages said: "I am delighted to be entering this growing market. Changing attitudes to retirement planning and increasing confidence in the sector, shows there is a genuine need for this type of product.

"For the first time, advisers will have access to drawdown and lump sum products without ERCs – a major step forward in the market place."

Sixty Plus comment: This is the most interesting development for some time. As the first lender to offer a product with no early repayment charges Godiva is a welcome addition. Some clients take equity release with the clear intention or repaying it in the short to medium term by moving house and downsizing. The absence of an early repayment charge that would normally be at least 5% will make equity release more appealing to some.