Interest Select Options
Monthly interest payments fixed at the outset
Our Interest Select Options have been designed to overcome customer concerns about the impact of interest roll-up. Unlike traditional roll-up Lifetime Mortgages, Interest Select has been developed for customers who wish to release equity and are able to pay either some, or all, of the interest.
- Release a minimum loan amount of £10,000 and a maximum of £2 million.
- Choose to pay between 50% and 100% of the interest
- Choose to pay for between 5 years and the total life of the loan
- Choose to stop the interest payments and convert the loan to interest roll-up
- Miss up to three interest payments before being converted to interest roll-up
- Pay by direct debit on the first working day of the month
- The payment term and amount are fixed from the outset and can't be amended once the mortgage has been set up
- Once the payments have been stopped, they can't be restarted
Want to find out more? You can read more about our product features in our At A Glance Interest Select Guide.
Other product features:
- No affordability checks
We've removed the affordability assessments, so you don't need to send in any supporting documents.
- Fixed early repayment charges
Our Interest Select Options have fixed early repayment charges. They are 5% of the initial loan amount for the first five years, 3% for years 5 to 8, and 0% from year 9 onwards.
- Inheritance guarantee
Don't forget that if your customer doesn't want to release the full LTV available to them, they can protect the remaining equity using our Inheritance Guarantee Option, which is free of charge
- Cash reserve facility
This facility can be added to the mortgage at the outset. Alternatively, your customer can apply for additional borrowing at a later date. Find out more here.
If your customer takes more than £40,000, they can choose to take £1,000 cashback which is paid upon completion. We won't add it to their loan balance, and we won't ask them to repay it if they choose to redeem their mortgage.
- Downsizing Protection
For KFIs generated between 8 June 2017 and 1 September 2017, if, after 5 years, your customer wants to repay the loan because they are selling their home and moving to a different property they will not need to pay an Early Repayment Charge.
- Early repayment waiver
For KFIs generated between 8 June 2017 and 1 September 2017, your customer will not need to pay an Early Repayment Charge if they decide to repay their Lifetime Mortgage within 3 years of the date that the first borrower dies or goes in to long term care.
|Product||Monthly interest rate (MER)||Annual interest rate (AER)|
|Interest Select Gold||5.36%||5.49%|
|Interest Select Platinum||5.83%||5.99%|
If your customer chooses to have cashback the MER will increase by 0.10%. If they choose to have a cash reserve facility the MER will increase by 0.20%.
You can find our LTV tables here.