FAQs

Please find a selection of frequently asked questions below. If you need any further information please contact us.

The Retirement Account

The Retirement Account is designed to be an advised only product. We believe everyone should seek help from a professional adviser. That’s why we only make our services available via independent companies who can help you make the right decisions. You’re entitled to a free guidance session under a new service created by the Government called Pension Wise. You should take advantage of this, but we believe you will still require the additional services of a retirement specialist.

The Retirement Account is a registered pension scheme established under income drawdown regulations. It has been designed to provide you with considerable flexibility and choice over how you manage pension investments and benefits over the span of your retirement.

By combining a Guaranteed Annuity, Pension Savings and Pension Drawdown into one simple account, The Retirement Account offers considerable flexibility and choice – helping you manage your pension investments and benefits in a tax-efficient way.

The Retirement Account allows you to transfer pension funds you have with other pension providers or company pension schemes and consolidate them in one plan. Taking advantage of The Retirement Account flexibilities and tax advantages, you can then use these funds for your retirement needs as you wish.

The funds that you transfer into the Retirement Account will normally be uncrystallised funds, which means they haven’t yet been used to provide retirement benefits, including a tax free cash sum. However, you may also transfer funds that are already crystallised and in drawdown with another provider, which means you’ve already allocated them for retirement benefits and taken your tax free cash.

The money you transfer into your Retirement Account can be used in the following ways:

1. Uncrystallised transfers that haven’t yet been used for Retirement Benefits.

  • You can choose to crystallise all of this money into Pension Drawdown and take benefits immediately, including a tax free cash lump sum.
  • You can set aside some of this money as Pension Savings to move into Pension Drawdown (including Guaranteed Annuity) whenever you choose.

2. Crystallised transfers that are already in drawdown.

  • No tax-free cash is available as it has already been paid, but you can choose to take benefits (income and/or taxable lump sums) immediately or whenever you choose.

Choices of The Retirement Account

The Retirement Account gives you the flexibility of dividing the money you allocate to Pension Drawdown between Guaranteed Annuity and investing in Pension Drawdown funds.

This means you can balance the security of a Guaranteed Annuity with the flexibility and easy access of pension drawdown funds. You can also adjust how much income you receive and therefore control how much income tax you pay.

Pension drawdown funds can be invested for growth opportunities or used for additional spending in the early years of your retirement when you are likely to be more active. With your pension drawdown funds you can take as little or as much of your money as you choose.

So you can take no money out initiallyand just leave your funds invested, or you can take a regular income and/or just withdraw money from your fund when you choose. You have the choice of investing in one or more of our thoroughly researched range of funds. Each fund comes with a different risk profile, which means, with the help of your financial adviser, you can match your choice to the amount of risk you feel comfortable taking. If you want to change your fund choice, you can switch between the different funds at any time.

The funds are invested in a range of different types of assets and are made up of units, which you buy. The price of these units depends directly on the performance and value of the investments in the fund. The value of your investment in each unit-linked fund is based on the total number of units you have in the fund and the unit price (the price at which we buy and sell units). If the unit price rises or falls, so will the value of your pension drawdown funds.

As you have complete access to your money, the main choices you have concern the funds that you want to invest in.

If you choose to set aside some of your transferred funds as Pension Savings, then you must also hold a minimum investment in pension drawdown funds at all times and/ or have purchased a Guaranteed Annuity. If you don’t have a Guaranteed Annuity we’ll let you know if you need to top up your pension drawdown funds if they fall below the minimum investment required. 

The same range of investment funds is available across The Retirement Account, however you can choose to invest in different funds to your pension drawdown investment if you wish. At any time you can tell us to crystallise some or all of your pension savings funds into Pension Drawdown subject to a minimum amount. When you do this, you will be entitled to take a tax free cash sum of up to 25% of the amount you decide to crystallise at that time. We will take funds proportionately from your pension savings funds to pay any tax free lump sum.

Any pension savings funds you move into Pension Drawdown (other than those used to purchase any Guaranteed Annuity) will be invested in their current funds, unless you request otherwise.

A Guaranteed Annuity will provide you with a secure income for the rest of your life. You can also choose for this income to be paid to your spouse, partner or dependant upon your death.

You may find a Guaranteed Annuity is a sensible way of covering your fixed day to day living expenses in retirement, alongside the state pension scheme and any other pensions you may have.

You can buy a Guaranteed Annuity using the pension drawdown funds in your Retirement Account at outset. You can also increase your Guaranteed Annuity later on by purchasing additional amounts with any remaining pension drawdown funds you have. The income you receive will depend on how much money you allocate to the Guaranteed Annuity. It also depends on your age, lifestyle, state of health and other factors including annuity rates at the time, and any optional benefits you choose.

Money Back Guarantee - you can choose to provide a lump sum in the event of your death. The amount payable can be up to 100% of the amount you originally used to purchase your Guaranteed Annuity, less all the gross Guaranteed Annuity payments made up to the date of your death. 

Income Guarantee - you can choose to guarantee your annuity payments for up to 30 years. This means in the event of your death the income continues to be paid for the remainder of the guaranteed period. At the point there is a claim for this benefit, your beneficiary(ies) can choose to exchange outstanding Income Guarantee instalments for a lump sum which we calculate at that time. You can’t choose an Income Guarantee and a Money Back Guarantee together. 
Dependant’s Income - you can ensure that a named dependant (spouse, partner or other dependant) receives a proportion of your income for the rest of their life should you die before them. The amount paid can be 50%, 66%, 75% or 100% of your income. Should you outlive your dependant, income will cease on your death. 
Pension increases - to help protect your income against inflation you can choose to increase your income payments each year. Increases can either be a fixed amount of up to 10% each year, or linked to the Retail Prices Index (RPI).

These options are paid for by a reduction in the Guaranteed Annuity income we offer.

The Retirement Account is structured so that you can buy more Guaranteed Annuity whenever you choose using any pension drawdown funds you have. Moreover, you can choose different options including different dependants for each purchase.

The amount of income you receive will also depend on how much money you allocate to the Guaranteed Annuity, your age, lifestyle, state of health and other factors including annuity rates at the time of purchase.

You can choose to have your Guaranteed Annuity and Pension Drawdown income paid to you monthly, quarterly or yearly. You can choose to have your payments made to you on the 12th, 20th or 28th of the month, although you may receive your payments earlier than your chosen date. For example if your payment falls over a weekend or bank holiday.

In the event of your death, if you have chosen not to include death benefits under your Guaranteed Annuity and you have no pension drawdown or pension savings funds then your Account will cease.

Otherwise, any pension drawdown funds and pension savings funds will be made available to your beneficiary(ies), after the payment of any outstanding plan charges and adviser fees, and the recovery of any overpaid income.

Any Dependant’s Income you have chosen to include under a Guaranteed Annuity will be payable to the spouse, partner or other dependant named in your policy document. This person will also receive the balance of any Income Guarantee payments.

Where you have opted for both an Income Guarantee and a Dependant’s Income, the income payable for any residual Income Guarantee period is the level of income you would have received, had it continued for the remainder of the Income Guarantee period.

When the Income Guarantee period ends, the income from that point will be the level of the chosen Dependant’s Income.

Where you have opted for both a Money Back Guarantee and a Dependant’s Income, a lump sum may be payable on the second of your death and the dependant’s death. The lump sum will be your chosen Money Back Guarantee percentage, multiplied by the original purchase price, less the total gross income payments, including any Dependant’s Income, to date.

For the following payments:

  • Money Back Guarantee
  • Remaining pension drawdown and pension savings funds
  • Income Guarantee payments where there is no named dependant Retirement Advantage has discretion over the exact form of benefits and the recipients. You can let us know who you would like to receive benefits following your death by instructing us in writing. Any nomination you make this way is not binding on us at the time but will be considered carefully.

The beneficiaries will have three options in respect of any residual funds:

  • Establish their own Retirement Account, leave the money invested and draw an income as and when they wish
  • Purchase a Guaranteed Annuity
  • Take the remaining value of the Retirement Account as a lump sum

If your beneficiaries would prefer to establish their own Retirement Account, we will make this option available to them at the appropriate time, provided there is a minimum value left in the investment funds (the current minimum value can be found on our website). Any Pension Savings funds will automatically be moved into Pension Drawdown.

A Beneficiary Retirement Account will also be established for any Dependant’s Income and Income Guarantee Payments. When we receive formal notification of your death, payment of any adviser charges from your Retirement Account will stop. Any outstanding payments that are due to your financial adviser may still need to be settled. Your personal representatives will be able to authorise a one off adviser charge to be paid from your Retirement Account by writing to us.

If your beneficiaries decide to establish their own Retirement Account, they can take benefits as a series of payments as opposed to a single lump sum.

If you die on or after age 75, the payments are liable to income tax at your beneficiaries marginal rate and so structuring payments in this way could help minimise the amount of tax they pay.

Tax on income

If your beneficiaries decide to establish their own Retirement Account, they can take benefits as a series of payments as opposed to a single lump sum. If you die on or after age 75, the payments are liable to income tax at your beneficiaries marginal rate and so structuring payments in this way could help minimise the amount of tax they pay.

Tax on Death

If you die before your 75th birthday any income and/or lump sum payments will be tax free when paid to your beneficiaries. If you die from age 75 onwards then income and/or lump sum payments made to your beneficiary(ies) will be taxed at their marginal rate of income tax.

There is normally no inheritance tax payable on the value of your Retirement Account.

Lifetime Allowance

HMRC sets out a limit for the total amount of pension benefits you can take called the Lifetime Allowance (LTA). A check is made to ensure that your benefits do not exceed the LTA at the commencement of your Account and when you reach age 75. If you exceed it you will have to pay a tax charge on the excess over the LTA limit.

Please also note

Tax rules depend on individual circumstances and may change. We recommend you get professional advice if you need more information on tax.

Redirection of Guaranteed Annuity payments into Pension Drawdown

At any time you can choose for all or a proportion of your Guaranteed Annuity income to be paid into your pension drawdown funds instead of being paid to you. If you do this, at that point, you will not be liable for income tax on the income and the gross income would instead be available to buy units in your chosen funds. This could be a useful tool for planning how much tax you pay and it also means that you accumulate a larger pension drawdown fund which you can withdraw in the future or leave to your beneficiaries. 

At any time you can choose for the income to be payable to you, in which case you may be liable for income tax.

You can transfer your investment (Pension Drawdown and Pension Savings) funds to another registered pension scheme at any time. If you decide to transfer these funds, we may take a charge that will include any outstanding adviser charges. You can’t transfer the value of any Guaranteed Annuity.

We will send you a yearly statement to show you how your Retirement Account is performing. You should review your Retirement Account on a regular basis to ensure it continues to meet your needs. Your financial adviser can help you with this. You can check the prices of funds online and you can obtain your Retirement Account value by phoning our customer services team.

All of the charges outlined below are detailed in your personal illustration.

Adviser Fees

Adviser fees are charges for the financial advice you have received. You can pay for the advice by agreeing to have it deducted from the fund we receive from the transferring scheme(s). This will reduce the amount available to buy benefits in your Retirement Account. If you hold investments in your Retirement Account you may also agree a regular ongoing fee and there may be other one-off fees that you’ll need to agree with your adviser. These fees will be paid for by deductions from your investments which will affect the value of your funds in the future.

Product Charges

We make a drawdown charge when you move any uncrystallised funds under your Retirement Account into Pension Drawdown. This could be at the outset of your Retirement Account or later when you crystallise any Pension Savings you hold. The charge will also apply separately to each Pension Drawdown arrangement that originates from already crystallised pension transfer monies.

If you hold investments under your Account there is also an annual charge, which is deducted monthly and is taken from your investments. Both charges are outlined in your personal illustration and The Retirement Account Technical Summary

We can make changes to the drawdown charge and annual charge and to other charges associated with your Retirement Account such as the cost of making ad-hoc income payments by electronic bank transfer, or to the cost of the investment funds available. We will give you notice of any change at least 60 days in advance. Our current charges can be viewed here.

Annual Management Charge (AMC) 

An annual investment charge will be deducted, on a daily basis, in determining the unit price of each investment fund. There may also be additional expenses which are taken directly from the investment funds, or from the underlying investments of the investment funds. These additional expenses are the normal costs, taxes, duties and other charges incurred in holding, purchasing, managing and selling the assets of the investment funds. Find out our charges that are currently applied to any investment funds here

The current maximum amount is £3 million, which may change in the future. The maximum amount applies to all guaranteed annuities (purchased within The Retirement Account or standalone Guaranteed Annuity) you have bought with Retirement Advantage and/or MGM Advantage.

You have the right to cancel at any time up to 30 days from receiving your schedule of benefits. We will write to you and provide a notice about your right to cancel. You need only return this cancellation notice if you wish to cancel your Retirement Account.

If you decide to cancel your Retirement Account, you must return the cancellation notice within 30 days. You must also return any money received, including any tax-free cash payments. Cancellation notices must be returned to:

Retirement Advantage Customer Services PO Box 4993 Worthing BN99 4AE

Am I eligible for The Retirement Account?

To qualify for The Retirement Account you must be at least 55 and no older than 85 (there is no maximum if you choose the Pension Drawdown or Pension Savings options only). You and your financial adviser may need to provide us with some information about your health and lifestyle as part of your application, or we can call you to collect the relevant information. We will then provide you with a personally tailored quote, to get you the highest level of guaranteed income.

What is the minimum amount I can invest?

To invest in the Retirement Account you need a minimum of £20,000 in pension funds after any tax-free cash has been paid to you and any initial adviser fee has been paid to your financial adviser. You must also be a resident in the UK when you apply, and when the policy starts.

How do I get a valuation on my investment?

You can request a valuation over the phone, email or in writing. Please contact us here

How can I find out about fund performance?

Visit our Fund centre to see current fund prices, fund fact sheets showing recent performance and fund information, and information about our Fund Managers.

Annuities

How do I let you know my new address?

  • Please call 0800 032 7690 with your policy number.
  • Or write to us at our Worthing address

If we are unable to verify your new address on the phone, or if you write to us, we’ll need evidence of your change of address, such as:

  • An original, recent utility bill or services confirmation showing your name and new address, or
  • A solicitor’s letter confirming the new address.

How do I change my name on my policy?

Please call 0800 032 7690 with your policy number.

If you would prefer to write to us instead, please send us a signed letter with your old and new signatures together with a certificate of marriage, civil partnership, deed poll certificate or decree absolute to our Worthing address

Why do I have to provide evidence for a change of name / address?

When you request changes to your personal details, we take various steps to verify that the information is being provided by you and not by an unauthorised person. We do this by using reference agencies to search sources of information relating to you. If this is unsuccessful we may need to ask for documentary evidence from you, for example, a utility bill for change of address.

How do I advise you of a bank account for my payment?

Please call us on 0800 032 7690 or write to us at our Worthing address.

When you request changes to your bank account, we take various steps to verify that the information is being provided by you and not by an unauthorised person. We do this by using reference agencies to search sources of information relating to you. If this is unsuccessful we may need to ask for documentary evidence from you, such as an original bank statement or letter from your bank showing the name and address of the account holder and the account number

How do I buy a Retirement Advantage product?

Your finances are going to pay a substantial role in your retirement. That’s why we insist that – if you haven’t done so already – you enlist a financial adviser to take a good look at your circumstances and long-term expectations.

If you don’t have an adviser, it’s easy to find one. Visit www.pensionwise.gov.uk

You can also visit Pick a Retirement Specialist, www.pick-a.org a directory of organisations that can help you as you approach retirement. Here you’ll find the type of support you need to help you prepare for your retirement financially.

Why has my annuity payment changed?

Your annuity may have changed for a couple of reasons. You may have set up your annuity with an escalation option; this would mean your annuity payments would increase each year on the basis you selected.

The other reason your annuity payment may have changed is because we’ve been given a new tax code by HMRC. As your annuity is taxed at source this may increase / decrease the tax you’re liable to pay. For confirmation of this, please call us on 0800 032 7690.

When will I receive my payment and can this date be changed?

Your payment is determined by your policy start date and the frequency you selected. Once you annuity has started, you won’t be able to make any changes to your payment frequency and benefits.

Will tax be deducted from my annuity?

Your annuity is taxed as earned income based on your individual tax code under the PAYE system. When HMRC gives us your tax code, we’ll make any adjustment required. We’ll send any tax due to the HMRC on your behalf.

When will I receive my pension commencement lump sum (also known as ‘tax-free cash’) payment?

If Retirement Advantage is paying your pension commencement lump sum, we’ll make payment within 48 hours of receiving your fund. This is paid by direct credit into your account and will be cleared funds within three to five working days.

Am I covered by the Financial Services Compensation Scheme (FSCS)?

Retirement Advantage is covered by the FSCS. You may be entitled to compensation from the scheme if we can’t meet our obligations. This depends on the type of business and the circumstance of the claim.

To contact the FCSC please visit www.fscs.org.uk/contact-us/

Is there an overall maximum purchase amount of annuity I can buy from Retirement Advantage?

The current maximum amount is £3 million, which may change in the future. The maximum amount applies to all guaranteed annuities (standalone Guaranteed Annuity or purchased within the Retirement Account) you bought with Retirement Advantage and/or MGM Advantage. 

How do I get a valuation on my investment?

You can request a valuation over the phone, email or in writing. Please contact us here

How can I find out about fund performance?

Visit our Fund centre to see current fund prices, fund fact sheets showing recent performance and fund information, and information about our Fund Managers.

Do I have to wait three years to conduct an income review on my Flexible Income Annuity?

You can ask us to change your income level or required fund performance at any time -please contact us here. We will automatically review your income on every third anniversary.

Equity Release

Will I leave a debt for my beneficiaries when I die?

No.

Retirement Advantage offers a No Negative Equity guarantee. This means that when your property is sold for the best price reasonably obtainable, if the proceeds after solicitors' and estate agents' fees are not enough to pay the amount owed to Retirement Advantage, we will not ask you or your beneficiaries to pay the shortfall. 

A lifetime mortgage may however affect the inheritance you’re able to leave your family, so we encourage you to talk to your family at every stage of the process. If leaving an inheritance is important to you, your financial adviser will bear this in mind when recommending a product to you.

Will my property be repossessed?

As long as you abide by the Terms and Conditions of the loan, you’ll always retain ownership of your home. You can stay in your home until your death or move into long-term care without the concern of your property being repossessed. 

If you have an Interest Select mortgage and can no longer afford the monthly payments, your loan will be converted to interest roll-up and you will not face repossession.

What happens if my circumstances change?

You must advise us if your circumstances change, for example if you get married, as they may affect your contract with us.

Do I have to pay tax on the money I receive?

Under current legislation, any cash sum drawn from your home will not attract Income Tax or Capital Gains Tax.

Will the money I receive affect my state benefits?

This is something your financial adviser will be able to tell you.

If you're receiving benefits, a lifetime mortgage may reduce or even cancel your entitlement to some means tested state benefits. If you’re not claiming any state benefits, you may be entitled to claim them.

Further information can be found from the Citizens Advice Bureau, HM Revenue & Customs, the Pension Service or the Benefits Agency.

Does my eligibility depend on my income and/or health? Will I need to take a medical?

Neither your income nor your state of health has any bearing on your eligibility for a Retirement Advantage lifetime mortgage. However, it may affect the product which is recommended to you. Your financial adviser will consider this when deciding on the product that is most suitable for you.

We've briefly outlined what you can expect when you take out a lifetime mortgage here. Or you can look at some of the questions and answers below.

What is a KFI?

KFI stands for Key Facts Illustration. It’s a document containing certain information about the lifetime mortgage you’re about to take out. It includes a description of your mortgage, alongside the features, benefits, risks, how much you’ll owe, fees and costs. It’s presented in a standard format so that you can easily compare it between different lenders and products. This format is defined by the Financial Conduct Authority.  

How long will it take to get my money?

Once your application has been submitted, a Valuer will contact you to arrange an appointment. Once this has taken place, an Offer Letter will be issued to you. In general, this takes around 2 weeks, but it can be quicker. Your solicitors will receive a copy of the Offer Letter, and will start the legal process. The legal stage is generally what takes the longest amount of time, as all of the necessary checks and searches need to take place. This can take between 4 and 6 weeks, but can sometimes take longer if a case is complex (for example, if the property is unregistered).

Can I come back for additional borrowing?

You may qualify for additional borrowing if there is sufficient equity remaining in your property. If you believe that this is the case, you’ll need to obtain financial advice and your adviser will be able to guide you through the process. We may require an up to date valuation of your property as part of the process. 

How do I know how much is outstanding on my lifetime mortgage?

You will receive an Annual Statement at the beginning of each year which will show your balance.

How is my lifetime mortgage paid off?

Usually, a lifetime mortgage is paid off following your death or move into long term care (or in the case of joint borrowers, when the survivor dies or moves into long term care). Repayment is due within one year of this, and the funds are usually raised through the sale of the property.

What if I want to repay early?

You can repay part, or all, of your lifetime mortgage at any time. However, our lifetime mortgages are designed to last for the rest of your life so an early repayment charge (ERC) may be payable. Your financial adviser should have explained when these would be applicable. It’s also explained in your KFI.

What happens to my home when I die or move into long term care?

When you die or move into long term care, your executors must get in touch with us. They’ll be responsible for selling your property and will have 12 months to repay the loan. Interest will continue to be charged until the loan is repaid.

What do you mean by long term care? 

Long term care means that you’ve chosen to leave your home because you’re no longer able to carry out two or more Activities of Daily Living (ADL) without the assistance of another person, or because you’ve become cognitively impaired (a loss of mental ability). When you leave the property, you can choose to go into professional care or move in with your family.

I've decided I want to move house, what do I need to do?

Once you've found the property you'd like to purchase, you should contact our Customer Services team. They'll talk you through the next steps, and send you an Application Form.

How will I know if the property I'd like to buy is acceptable to Retirement Advantage?

When you fill in the Application Form you’ll be asked about the property. If you tick a grey box you'll be prompted to contact our Underwriting team, who’ll be able to tell you if the property is acceptable.

What do Retirement Advantage need?

When you contact us we'll need you to tell us the asking price of your current property, and the purchase price of the new property. Our Finance Team will then calculate if you need to repay any of the mortgage when you port.

Will I need legal advice?

Yes, you’ll need to seek legal advice. The Solicitor you appoint when you purchase your new home may be able to act for you.

Will I need financial advice?

If you're moving your mortgage and not changing the outstanding loan amount, you won't need financial advice. However, if you'd like to take any additional borrowing you’ll need financial advice - this is explained in more detail below.

Will I need to repay any money?

If your new property is of lower value than your current one, you may need to repay some of your mortgage. This is because we need to keep the same level of borrowing as you initially took out. Our Finance Team will advise you if this is the case. We won't add any early repayment charges if you do need to make a repayment.

Can I borrow any more money?

If you did not initially take out the maximum amount available to you, or are moving to a higher value property, you may be able to request additional borrowing. This is subject to our lending criteria at the time. Our Finance Team will be able to let you know whether this option is available to you. If it is, you’ll need to seek financial advice.

What fees will you charge?

We'll need to instruct a valuation, and will let you know how much this costs when you apply. A completion fee will also be charged when the Offer is sent to you. Both of these should be paid by cheque up front. You’ll also need to pay for your legal advice, and any fees charged by your financial adviser.

Will I need to pay an Early Repayment Charge (ERC)?

No, we don't charge ERCs if you’re moving the mortgage to another property.

What's the process?

Once we receive your completed application form, we'll instruct a valuer. They’ll contact the estate agent managing the new property, and arrange a valuation.

Once this has taken place, an Offer Letter will be sent to you confirming details of the port, including the amount you need to repay, if any. In general, this takes around 2 weeks, but it can be quicker.

We'll also send a copy of the Offer Letter to your solicitors, who’ll start the legal process. The legal stage is generally what takes the longest amount of time and can take between 4- 6 weeks (although it can sometimes take longer if a case is complex).

Will the property purchase and the port complete at the same time?

Yes. We'll liaise with your Solicitors to ensure everything completes on the same day.

We understand that a bereavement can be very difficult. We try to make the process of informing Retirement Advantage as simple as possible. 

If you're notifying us about the death of one person, but a second person is also named on the mortgage, you can find out more information below.

Who should we contact?

We have a dedicated team who you can contact to notify us of your loss. The team can be contacted by telephone.

What will you need?

When you contact us, we'll let you know what we need. Usually, the first document we'll need you to send us is an original copy of the death certificate. We can also accept copies which have been certified by a solicitor. Once probate or letters of administration has been granted we'll require a copy, alongside details of the personal representatives of the estate.

If one person dies, but it's a joint mortgage, what will happen to the other person named on the mortgage?

The lifetime mortgage will continue to run until the other person, who’ll become in effect a single borrower, dies or moves into long term care. We’ll need to be contacted so that we can update our records, but the surviving borrower will still maintain ownership of the home and the lifetime mortgage will continue as before.

What happens to the monthly interest payments?

If it's an Interest Select product, the interest payments will continue as normal. We'll let you know if we need you to update the bank details we hold for you, which will depend on the account which the payments are being collected from. If you decide that you no longer want to make the interest payments, you can contact us and we'll talk you through the options available to you.

Will an early repayment charge be applied?

No, we won't add an early repayment charge to the outstanding balance.

Will interest continue to be charged on the outstanding amount?

Yes. We’ll continue to charge interest until the outstanding balance is settled.

What happens to my monthly interest payments?

If you have an Interest Select product, your family can contact us to arrange to continue making the interest payments until the lifetime mortgage is redeemed. Alternately, the interest payments can be stopped and the mortgage can revert to an interest roll-up.

We understand that this can be a very difficult time. We try to make the process of informing Retirement Advantage as simple as possible.

Joint borrowers

If you're notifying us that one person is moving into long term care, but there is a second person who is named on the mortgage, you can find out more information below.

Who should I contact?

We have a dedicated team who you can contact to notify us of a move into long term care. The team can be contacted by telephone.

What will you need?

When we've been informed that one of the customer's is moving into long term care, we'll send you a form which the family doctor will need to fill in. We'll also require confirmation of their new residence.

What qualifies as long term care?

We define a customer to need long term care when at least 2 daily activities can no longer be performed.

What qualifies as a daily activity?

We use 5 daily activity indicators. Dressing (being able to put on, take off, secure and unfasten all clothes and, as appropriate, braces, artificial limbs or other surgical appliances); feeding (being able to feed oneself food which has been prepared and made available); mobility (being able to move from room to room in the home); transferring (being able to move from bed to an upright chair or wheelchair and vice versa); washing (being able to wash in a bath or shower (including getting into or out of either) or wash by any other means).

Does the customer have to move out of their property for it to be classed as long term care?

Yes, they would need to move out for long term care. If they don't move into a home, we still classify it as long term care if they move in with a family member or other carer.

If one person moves into long term care, but it's a joint mortgage, what will happen to the other person named on the mortgage?

The lifetime mortgage will continue to run until the other person, who’ll become in effect a single borrower, dies or moves into long term care. We will need to be contacted so that we can update our records, but the surviving borrower will still maintain ownership of the home and the lifetime mortgage will continue as before.

Single borrowers

If you're notifying us about the only person named on the mortgage, or the mortgage was has previously changed from being in two people's names to just one, you can find out more information below.

Who should I contact?

We have a dedicated team who you can contact to notify us of a move into long term care. The team can be contacted by telephone.

What will you need?

When we've been informed that the customer is moving into long term care, we'll send you a form which the family doctor will need to fill in. We'll also require confirmation of their new residence.

What qualifies as long term care?

We define a customer to need long term care when at least 2 daily activities can no longer be performed.

What qualifies as a daily activity?

Does the customer have to move out of their property for it to be classed as long term care?

Yes, they would need to move out for long term care. If they don't move into a home, we still classify it as long term care if they move in with a family member or other carer.

What happens to the lifetime mortgage?

If you're notifying us about a sole borrower, which means that the mortgage is only in their name, the mortgage will need to be redeemed. We'll talk you through the next steps and what we need from you.

How long will my Estate have to pay back the lifetime mortgage?

We ask that we receive the outstanding balance amount within one year. However, we know this can be a difficult time, so we can arrange an alternative agreement as long as you keep us updated as to the progress.

Does the money we use to repay the lifetime mortgage have to come from the sale of the property?

No. If you can repay the mortgage from an alternative source, you don't have to sell the property. We'll just need you to let us know what the repayment vehicle is.

What happens to the property?

The personal representatives of the estate are responsible for the property and, if necessary, arranging the sale. They also need to ensure that Home Buildings Insurance stays in place until the mortgage is redeemed. Please note that most insurers restrict their cover when a property is left unoccupied for more than 30 days. The personal representatives may need to check with the insurer that they have sufficient cover in place so that they are not in breach of the mortgage Terms and Conditions.

Will an early repayment charge be applied?

No, we won't add an early repayment charge to the outstanding balance.

Will interest continue to be charged on the outstanding amount?

Yes. We’ll will continue to charge interest until the outstanding balance is settled.

What happens to my monthly interest payments?

If you have an Interest Select product, your family can continue to make the interest payments until the lifetime mortgage is redeemed. Alternately, the interest payments can be stopped and the mortgage can revert to an interest roll-up.

Although this mortgage has been designed to last the rest of your life, there may be circumstances in which you wish to repay some, or all, of the outstanding balance early. We call paying back your mortgage 'redeeming' your mortgage, and a single payment is referred to as a 'redemption'.

Can I fully repay the outstanding balance at any point?

Yes. You can make a full repayment at any point, but because the lifetime mortgage has been designed to last the rest of your life, the payment might be subject to an early repayment charge (ERC). Your financial adviser will have explained how and when an ERC is applied, and it’s also explained in your Offer Letter.

Can I make a partial repayment at any point?

If you want to repay a part of the lifetime mortgage, you can at any point. The only condition is that there is a minimum loan balance of £10,000 remaining once the payment has been made. Because the lifetime mortgage has been designed to last the rest of your life, the payment might be subject to an early repayment charge (ERC). Your financial adviser will have explained how and when an ERC is applied, and it’s also explained in your Offer Letter.

How frequently can I make partial repayments?

There's no limitation to the number and frequency of partial repayments you can make.

Are there any additional costs to pay when I make a repayment?

We’ll charge a redemption fee of £200, which is an administration fee. If you're making a partial redemption, the administration fee is £65. You may also be charged an early repayment charge (ERC). Your financial adviser will have explained how and when an ERC is applied, and it’s also explained in your Offer Letter.

How do I know how much is outstanding?

Each year we'll send you an Annual Statement, which will show what your outstanding balance is as of January 1st. If you wish to redeem some, or all, of the mortgage, you can contact us or an indicative amount. We'll let you know at this point any additional costs which will be added (for example, any early repayment charge and/or a redemption fee).

What do I need to do to make a full repayment?

The best thing to do is to contact us. We'll then send you a Redemption Quote which is valid for 28 days. It will detail how much would be due on each of the 28 days, so that you can make sure you pay the right amount on your chosen day. If you don't make the repayment during these 28 days, you can always request another Quote when you’re ready to make the full repayment.

Will you confirm that the redemption has been successful?

Yes. We'll write to you to confirm that we've received your payment, and will let you know if you have over- or under-paid. When we have fully closed the account and our charge has been removed from your property, you'll receive a Closing Statement.