Lifetime Mortgage Product Features

Our range of lifetime mortgages come with a number of product features. Some come as standard, and some can be added on. 

Your financial adviser will look at your circumstances and recommend the best combination for your individual needs. 

Cashback

If your initial advance is £40,000 or more, you can choose to take cashback. This means that when your lifetime mortgage completes, you'll receive an additional £1,000 to help cover any costs you had to pay when setting up the mortgage. The cashback is not added to your outstanding loan balance, and if you choose to repay the mortgage it is not included in the repayment amount.

If you choose this option, the monthly interest rate will increase by 0.10%. Cashback is only available on our Interest Select Options.

Cash reserve facility

If you think that you’d like to borrow more money in the future, you can choose to add a cash reserve facility to your lifetime mortgage when it is set up. This facility means that you can withdraw more money at a later date without taking financial advice. The amount in your facility is the total amount available to you, minus the initial advance. Interest is not charged on the amount in the facility until you withdraw it.

If you choose this option, the monthly interest rate will increase by 0.20%.

Early repayment charges (ERCs)

Our Lifetime Mortgages can be repaid at any time. You can also make partial repayments – providing there is a minimum loan balance of £10,000 remaining. However, our plans are designed to last for the rest of your life, so an early repayment charge may be payable if the loan is repaid early.

Each repayment is subject to a fee that is calculated based on when the initial advance, further advance or cash withdrawal was made. The early repayment charges are as follows:

  • Years 0-5: 5% of the initial advance
  • Years 6-8: 3% of the initial advance
  • Years 9+: no charge on any early repayments

We also a charge a redemption fee, which is currently £200, when you repay your loan in full.

Our early repayment charges have been designed with you in mind. They are fixed, transparent, and simple to understand. They let you know where you stand throughout your lifetime mortgage and give peace of mind from the outset. 

Inheritance Guarantee

With all of our lifetime mortgages you can choose to protect a percentage of the eventual sale value of your home at the outset. This means that the percentage you choose to protect is guaranteed to be available to you or your beneficiaries in the future.

This product feature is free of charge, but needs to be selected by your financial adviser.

No Negative Equity Guarantee

We guarantee that when your property is sold, if the proceeds after solicitors’ and estate agents’ fees are not enough to pay the amount owed to us, we will not ask you or your beneficiaries to pay the shortfall. If your property is sold for more than the amount you’ve borrowed against it, the amount left over belongs to you or your beneficiaries.

This product feature comes as standard.

Option to move home

If you move to a new property that is suitable to us, you can move the loan to your new home under the same Terms and Conditions. We call this 'Porting'. Your financial adviser will explain this to you in further detail.

This product feature comes as standard.

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