If you originally took out your equity release plan with Northern Rock, you should be aware that Northern Rock have left the equity release industry. When they left they sold their equity release book of customers to JP Morgan. JP Morgan use a servicing company called Papilio UK to administer your equity release plan.
Whilst not ideal, it does provide you with an opportunity to review your Papilio UK equity release plan, to find out if there is a better deal available.
You'll be pleased to know that interest rates have fallen since Northern Rock sold equity release plans, so it is likely you will be able to find a better deal. What's more, since they are no longer active in the market, Papilio may waive any early redemption fees that originally applied to your equity release plan.
It's important to put your home equity plan through a health check up and even more so in the case of Papilio UK as they are no longer offering any further advances to customers. You may have been sold a drawdown plan or been told that you would be able to release more money in the future. This will no longer apply so it is very worthwhile giving us a call to see if we can switch the plan to a more suitable plan from a Lifetime Mortgage provider who is active in the market.
We will be able to provide a full review of the Papilio/Northen Rock plan to see if there is a lower interest rate available. Interest rates are currently lower than Papilio rates by anywhere from 0.5% to 1.5%. A difference in rates like this can save thousands in roll up interest over the years.
You can call us on 0800 652 2955. Be sure to quote "Papilio1" when calling for your free Lifetime Mortgage health check.
As you may have read in the newspapers, newcastle based Northern Rock went through a difficult period when the recession of 2008. They were amongst the worst hit in the United Kingdom and ended up being nationalised and then sold to Virgin Money. It was one of the first banks for over 150 years to suffer from a bank run, whereby customers queue around the block to withdraw their savings.
Despite the fact Northern Rock suffered these horrendous consequences of the Great Recession of 2008-2011, equity release customers remained safe and secure. JP Morgan stepped in to purchase the Lifetime Mortgage book and whilst there has been an inconvenience and your lifetime policy is now administered by Papilio UK Equity Release, there have been no significant consequences. This is a reminder of how equity release works, in the sense that you are borrowing money, not the other way round. It is a very different proposition to having a savings account in a bank and that bank suffering from a recession.
Papilio UK Equity Release Mortgages Ltd are a Lifetime Mortgage servicing company and specialist purpose vehicle who work on behalf of JP Morgan looking after equity release customers, making sure that statements are sent on time and that work is completed correctly when a Lifetime Mortgage finishes.
The full company details are: Papilio UK Equity Release Mortgages Limited. They are registered in England and Wales with company number 07687338. Papilio's registered office is 35 Great St Helen's, London, EC3A 6AP. Papilio's trading office is also at that address.
Papilio have very little contact with equity release brokers like us and so we urge you to contact us if you have a Northern Rock Lifetime Mortgage currently held with Papilio as we are confident we will be able to help you secure a more favourable plan with a lender such as Aviva, LV= or Just Retirement.
We'd like to discuss with you the features and savings of the different plans that we have extensively sourced and negotiated on your behalf.
You'll be in the comfort of your home, explaining to a relaxed, mature, qualified adviser what you would like to achieve. Unlike our competitors, we will bring personalised quotes on the first visit so your priorities, goals and ambitions can be matched with sound, detailed advice on how you can achieve them.