With our Optional Payment Lifetime Mortgage, your customers can choose to pay some, or all, of the monthly interest by Direct Debit. They can also stop making monthly interest payments at any time and convert to full interest roll-up.
Why make monthly interest payments?
Making monthly interest payments will reduce the amount of interest that will accumulate over the life of the lifetime mortgage and offers better value for money when compared to standard interest roll-up lifetime mortgages.
Who is it for?
This product is designed for customers that have some monthly income and who wish to continue with the routine of making regular monthly interest payments, but do not have enough income to qualify under a residential mortgage affordability assessment. For example, customers aged 55 and over with maturing interest-only mortgages with no means to repay the capital.
The key features
- Make monthly interest payments by Direct Debit.
- Choose a payment amount that’s right for your customer’s budget – pay any amount between £25 and the full monthly interest each month.
- Fixed interest rates for life – certainty that the monthly interest payment will never increase.
- Choose a payment term that’s right for your customer – anything from 1 year to the full duration of the lifetime mortgage.
- No risk of payment default – stop making monthly interest payments at any time and remain in the home for the rest of their lives.
What makes our Optional Payment Lifetime Mortgage better?
- Available online – online KFIs and Apply Online.
- Available from just 3.91% AER – we are matching the price on our existing lifetime mortgage products.
- No fees or interest rate increase on conversion to full interest roll-up.
- A Drawdown Facility is available on all OPLM products.
- The option to pay monthly interest payments on Drawdowns.
- And remember, no income and expenditure information required – available without any affordability assessment.
