Super LTV Lump Sum Interest Roll-up with Voluntary Payment option Lifetime Mortgage

At a glance – What is it?

  • The Super LTV Lifetime Mortgage is designed to support customers who are looking to release more equity from their homes.
  • The lifetime mortgage provides your customer with a one-off lump sum amount at a fixed rate of interest, with higher loan-to-values (LTVs) than our Standard LTV Fixed Rate product.
  • With the Interest Roll-up with Voluntary Payment option, no payments are due as the interest is added to the loan for the life of the loan. The product does allow your customer to make voluntary payments should they wish to. They can repay up to 10% of the initial loan amount each year, without incurring an early repayment charge (ERC).
  • The Super LTV Lifetime Mortgage has a higher rate of interest than our Lump Sum Lite and Standard LTV fixed rate products.
  • Please note that this product has a minimum entry age of 65 at the time of completion, and is available for properties based in England and Wales only.

Who could this be suitable for?

Our Super LTV Lifetime Mortgage is aimed at customers who:

  • Want additional flexibility in how much equity they choose to release from their home.
  • Want to access a higher lump sum amount than would be usually available through a Standard LTV product.
  • Understand that the Super LTV lifetime mortgage has a higher rate of interest than our Lump Sum Lite and Standard LTV products and the total interest added to the loan will be higher.
  • Wish to use as much equity as possible to prioritise their current needs over their future needs and/or
    inheritance purposes.

Lump Sum Interest Roll-up with Voluntary Payment option Lifetime Mortgage– Super LTV

Our Interest Roll-up with Voluntary Payment option could be suitable for customers who:

  • Are looking for flexibility in managing their finances in retirement with no monthly interest payable.
  • Are less concerned about the impact of interest roll-up and how it reduces the equity in their property over time.
  • Like the idea of paying something off the debt but cannot commit to regular payments.
  • May be considering equity release as part of inheritance planning.
  • Want to discharge outstanding debts carried into retirement.

Considerations

Borrowing a higher amount will reduce the equity in the property over time, and as such, the value of inheritance available to beneficiaries.

  • A higher interest rate will mean that the interest added to the loan will decrease the amount of equity available in the home in the future.
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