The Just For You Lifetime Mortgage has a wide range of flexible options and features. This enables you to help clients make financial and lifestyle choices in later life that best suit their individual circumstances.
Servicing interest
Clients requiring an initial loan of at least £20,000 can now choose to pay all or some of the monthly interest by direct debit.
Clients selecting this option can choose different or no interest payments on any additional borrowing. Additionally clients choosing this option will benefit from a reduction to the roll-up interest rate.
- The amount they can service: They can pay as little as £25 a month but they’re able to pay up to 100% of the monthly interest amount. The amount they elect to pay is fixed from the start and they’re not able to increase or decrease this following completion.
- Payment holidays: Clients can take a break from their monthly payments of up to three consecutive months in any 12 month period following completion so long as they let us know a month in advance.
- Stopping payments: Your client is able to stop making monthly payments at any time, although once this is done, they’re unable to restart. Once payments have stopped, the loan will convert to full roll-up of interest basis. We do ask for one months’ notice where possible if your client stops making payments.
- Missed payments: If your client misses a total of six monthly payments over the lifetime of the mortgage, it’ll automatically convert to a full roll-up lifetime mortgage. Payments cannot restart if this happens.
Benefits to your client
- Servicing the interest, either partly or wholly, will reduce the overall cost of the mortgage.
- We’re also able to offer your clients the opportunity to pay interest on future borrowing.
- Peace of mind for your client – if circumstances change they can take a payment holiday or stop servicing the monthly interest. If they stop altogether, it will then convert to a full roll-up of interest meaning no further payments will be required until the end of the term.
Things to consider
Once payments are stopped, the loan balance will be charged at the higher interest rate as detailed within the customer’s offer.
During a payment holiday, the monthly interest not paid will be added to the loan and will roll-up on a compound basis. This will increase the overall cost of the loan.
If your client changes their mind about wanting to service interest on their mortgage or misses six payments, it’ll switch to a full interest roll-up mortgage and the interest rate applicable will increase. This means the loan amount will grow faster than if they’re making payments towards the amount of interest.
Once this happens, your client is unable to restart paying the monthly amounts.
Type of client who might benefit from this
This option may appeal to clients who want to reduce the overall cost of the mortgage and are:
- Receiving an income from employment, pensions or other sources
- Able to afford monthly payments
- Used to paying interest (on a soon to mature interest-only mortgage).
Cash facility option
This enables clients to withdraw cash as and when they need it up to a maximum amount. The maximum cash facility will be based on the age of the younger client (if this is a joint mortgage) and property value. Although the unused cash facility after the initial advance will be capped at £200,000.
Benefits to your client
Choosing this option means that interest is only paid on the amounts taken so is likely to build up slower than if the maximum amount is withdrawn at outset.
Things to consider
The interest rate applicable to initial and additional advances will be higher than if this option wasn’t chosen.
However, the interest only accrues on the amount taken, so if your client selects this option, they’ll only be charged interest on the advances released.
Type of client who might benefit from this
Clients who don’t need the maximum amount in one go and have future plans where smaller amounts will be needed.
Medical underwriting
Our medical underwriting expertise means we can take your client’s health and lifestyle conditions into account.
Benefits to your client
This could potentially enable us to offer a higher amount to your clients on a medically enhanced basis.
Things to consider
The interest rates we’re able to offer on an enhanced lifetime mortgage are usually higher than a non-enhanced basis.
Type of client who might benefit from this
Those with health conditions and who need the maximum amount possible.
Overpayments
Your clients can pay up to 10% of each advance amount they take out in each 12 month period following completion, subject to a minimum of £500 per payment and no more than 6 payments per 12 month period. This is without incurring an early repayment charge (ERC).
Benefits to your client
This enables your client to potentially reduce the overall cost of the mortgage without agreeing or being obliged to pay ongoing monthly payments.
It’s a way for your client to pay off some of their lifetime mortgage without having to pay an early repayment charge.
Things to consider
This feature isn’t available if your client has chosen to service the interest on their lifetime mortgage without them incurring an ERC.
Type of client who might benefit from this
A client who has received a lump sum, or would like to make occasional mortgage payments.
For more information
Call: 0345 302 2287
Email: support@wearejust.co.uk
Or visit: justadviser.com
Lines are open Monday to Friday, 8.30am to 5.30pm
