Voluntary Select Options
Our Voluntary Select Options have been designed to offer your customers flexibility and choice. Whereas the payments made under our Interest Select Options are fixed and routine, the Voluntary Select Options allow your customer to make a voluntary payment of their choosing each year.
Customers can make:
- A contribution of up to 10% of the inital loan amount each year. For KFIs produced betweeen 8 June and 1 September 2017, the annual repayment allowance will be increased from 10% to 12.5%.
- An unlimited number of voluntary contributions, with a minimum contribution amount of £50.
- Start their contributions immediately.
- Make contributions by cheque, BACs transfer, debit card or standing order.
Voluntary Select Platinum
If your customer is aged 70 years of age or over, they can take advantage of the higher LTVs on our Voluntary Select Platinum Option.
Want to find out more? You can read more about our product features in our At A Glance Voluntary Select Guide.
- Your customer's annual allowance is renewed on the anniversary of the completion date
- There are no penalities if no contributions are made in a year, and it does not the future annual allowances.
- There are no early repayment charges (ERCs) when your customer makes a voluntary contribution
Other product features:
- Fixed early repayment charges
- Inheritance guarantee
Don't forget that your customer can take advantage of our Inheritance Guarantee Option, which allows them to protect any remaining equity free of charge.
- Cash reserve facility
Your customer can choose to add a cash reserve facility to their mortgage at the outset. Alternatively, they can apply for additional borrowing at a later date. You can find out more about both of these options here.
- Loan amount
Your customer can release a minimum loan amount of £10,000 and a maximum of £2 million.
- Downsizing Protection
For KFIs generated between 8 June 2017 and 30 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)|
|Voluntary Select Gold||5.55%||5.69%|
|Voluntary Select Platinum||
If your customer chooses to have a cash reserve facility the MER will increase by 0.20%.
Our maximum LTV is 49%. You can find our LTV tables here.