Royal London has announced key enhancements to its Principal equity release product, introducing greater flexibility for both advisers and clients.
The updates include the launch of a new drawdown facility and a reduction in the early repayment charge (ERC) period from 10 years to seven.
The changes have been designed to give clients more control over how they access and manage property wealth in retirement, while maintaining Royal London’s focus on strong service standards.
The addition of drawdown capability means customers can now withdraw funds in stages, tailoring the release of equity to match their evolving financial needs.
The shortened ERC period, meanwhile, allows clients greater repayment flexibility, whether they choose to service interest on their loan or make larger repayments earlier than before.
Royal London confirmed that any cases currently progressing through application will remain under the previous 10-year ERC structure until completion.
Once complete, however, those cases will automatically switch to the new seven-year ERC terms, with all parties notified.
Alan Ritchie, customer life stage and solutions director at Royal London Equity Release, said the changes demonstrate the company’s long-term commitment to meeting customer needs.
He said: “The evolution of our Principal product reflects Royal London’s commitment to equity release as a core solution to meet customer needs.
“We know that the market must expand significantly to meet the growing customer demand for robust retirement planning and repayment of traditional mortgages.”
Ritchie added: “The new capabilities – a drawdown option and a reduced Early Repayment Charge period – provide advisers and their clients with more choice and meaningful flexibility.
“We will continue to listen to advisers and also use insight from customers to innovate in the market and to stand out for customer outcomes.”
