Overview

Our lifetime mortgage: the Lifestyle Flexible Option provides clients with a flexible approach. As well as receiving an initial lump sum (of £10,000 or more), your client can set up a cash reserve (minimum £5,000) to draw money from, as and when they need it. What’s more, they only pay interest on the money they’ve drawn.

Or your client could borrow a one-off cash lump sum of £15,000 or more. It could be a good option if they have something in mind they need to use the money for, like home renovations, or to help a child or grandchild onto the property ladder.

Your client continues to own their home, and they can live in it until they die or move into long-term care, subject to our terms and conditions. In the case of joint lifetime mortgages this applies to both partners. No regular repayments are required, instead interest builds up through the life of the mortgage and is charged on the amount borrowed and interest already added, which can quickly increase the amount owed. Your client won't have to pay tax on the amount they release, but it may affect their tax position and eligibility for certain welfare benefits. It will also reduce the amount of inheritance they can leave.

Great benefits as standard

• There is a fixed rate of interest throughout the term of the lifetime mortgage
• Interest rates are guaranteed for 14 weeks as detailed on your client’s offer
• Clients may qualify for an enhanced interest rate and/or an enhanced loan to value (LTV) if they have certain medical conditions or lifestyle factors which affect their health and meet our criteria. 
• No upper age limit – anyone aged 55 or over can make use of the equity in their home, as long as they are a homeowner
• Online access – clients can see up-to date policy details 24/7

Peace of mind

• Voluntary partial repayment – allows your client to repay 10% per year of the lifetime mortgage.
• No negative equity guarantee – your client or their estate won’t have to pay back more than the property sells for (as long as it's sold for the best price reasonably obtainable).
• Optional inheritance guarantee – your clients may be worried that the inheritance they can leave will be reduced. The guarantee allows your client to safeguard a percentage of their home’s value for their beneficiaries.
• Moving home option – your client may be able to transfer their lifetime mortgage to a new home (it must meet our lending criteria at the time).
• If the new property doesn't meet our lending criteria the mortgage will need to be repaid. However if your client is eligible for downsizing protection they can repay without an early repayment charge. (This feature is available on lifetime mortgages applied for on or after the 8 April, 2019 - subject to terms and conditions)
• Your client may be able to borrow more in the future, though we can’t guarantee this and it would depend on our lending criteria at the time.
• Our lifetime mortgage also has the option of a fixed early repayment charge. New customers will be able to choose between a fixed and a gilt-based ERC.