Dutch consumer interest programme Radar to focus on equity release mortgages

Florius Verzilver Hypotheek

Mortgage product Florius Verzilver Hypotheek allows older homeowners with a large excess value on their home to borrow a proportion of their home’s value without having to sell their home. Based on their income, these clients are usually unable to get a new mortgage, or they get just a small supplemental mortgage. Florius lets them use the excess value of their home to spend on other things, like renovating their home, giving their children financial support or maintaining their lifestyle.

More options

Florius Verzilver Hypotheek gives clients more options than other mortgages, which is reflected in its interest rate. The main features of the product that affect the interest rate are:

• Guarantee on market value: this means Florius will waive any residual debt when the house is sold, provided the client meets certain conditions. The guarantee ensures that clients can stay in their house until they sell it or pass away. Unlike some other mortgage providers, Florius does not force clients to sell their house if the debt reaches a certain level.

• Florius gives clients multiple options for making withdrawals during the entire term of the mortgage.

• The interest rate is fixed for the entire duration of the mortgage, which could even be a long period of time.

Accompanied by advice

Florius wants to make sure its Florius Verzilver Hypotheek mortgage product is only given to the targeted group of clients. That’s why the product can only be provided in combination with advice, which means the intermediary or adviser discusses the details of the product with the client to find out if it is truly in the client’s best interests and whether it meets their specific wishes. It could turn out that a regular mortgage or another equity release product is a better solution for the client.