Lifetime Mortgage Product Features
Our range of lifetime mortgages come with a number of product features. Some of these come as standard, some can be added on and some are product specific.
Your financial adviser will look at your circumstances and recommend the best combination for your individual needs.
We offer two types of cashback to help cover any costs you had to pay when setting up the mortgage:
If you choose our Lifestyle Platinum (Cashback) option, you will receive a cashback payment of 3% of the initial loan amount. The cashback is not added to your loan balance, but if you choose to repay the mortgage during the Early Repayment Charge term the cashback will also need to be repaid.
If you take out one of our Interest Select Options and 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. 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%.
- 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%.
Cash reserve facilities are not available on our Buy to Let and Second Home Options.
- 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 some 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. This feature is not available on our Landlord Options and Second Home Options.
- 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', you can find out more here. Your financial adviser will explain this to you in further detail.
This product feature comes as standard, but it is not available on our Landlord Options.
- Downsizing Protection
Some of our products offer a downsizing protection, which means that after 5 years, if you want to repay the loan because you are selling your home and moving to a different property you will not need to pay an Early Repayment Charge.
- Early repayment waiver
Some of our products offer an early repayment waiver, which means that you will not need to pay an Early Repayment Charge if you decide to repay your Lifetime Mortgage within 3 years of the date that the first borrower dies or goes in to long term care.
- Find out more
You can find out more about our range of Lifetime Mortgages here.