Interest Select Options
Our Interest Select lifetime mortgages are designed to overcome concerns about the impact of interest roll-up.
These options could be the right choice for you if you:
- Would like to keep the loan balance level
- Want to leave an inheritance to your family
How does it work?
Unlike traditional roll-up lifetime mortgages, our Interest Select lifetime mortgages allow you to pay some, or all, of the interest charged each month, for a period of your choice. This allows you to reduce the size of the rolled-up loan significantly.
The money that you release is tax-free, and is a one-off payment. The interest payments are simply debited from your nominated account each month.
Cash reserve facility
If you think that you might want to borrow more money in the future, you can add a cash reserve facility to your lifetime mortgage at the outset. This means that you can withdraw further funds, without having to take financial advice. Your financial adviser will be able to talk you through this in further detail.
Interest payments are made each month, by direct debit.
If your financial circumstances change, you can choose to stop making the interest payments at any time. Your financial adviser will be able to talk you through the implications of this.
Early Repayment Charges
If you decide to repay your mortgage, you may incur an Early Repayment Charge. Our Early Repayment Charges are fixed.
We also offer the following Early Repayment Charge waivers:
- If, after 5 years, you decide to repay the Lifetime Mortgage because you move homes, you will not need to pay an Early Repayment Charge.
- In the case of joint borrowers, you will not need to pay an Early Repayment Charge if you decide to repay the Lifetime Mortgage within 3 years of the date that the first borrower dies or goes into long term care.
The interest rates on our Interest Select Options are currently:
|Product||Monthly interest rate (MER)||Annual interest rate (AER)|
|Interest Select Gold||5.36%||5.49%|
|Interest Select Platinum||5.83%||5.99%|
Our Guide to Equity Release
Our customer brochure provides an overview of equity release and explains the main features of lifetime mortgages, and how these can benefit you if you are in, or approaching, retirement.
Order our documents
If you would like hard copies of our literature, you can order them for free using our document request form.