What is equity release?

The value of your home, minus any mortgage or loan secured against it, can be described as your "equity". Lifetime mortgage plans allow you to access this and turn it into cash. If you have a mortgage or loan secured against your property, some of the money you release through a lifetime mortgage must be used to pay this off.

Who can apply?

To apply for our lifetime mortgages you must be at least 55 years of age, a UK resident and own your own home.

Are there any repayments?

A lifetime mortgage is designed to last for the rest of your life and can be repaid at any time. You may have to pay an early repayment charge if you repay your loan early. However, most lifetime mortgages allow you to repay up to 10% of your loan each year without paying an early repayment charge, and some products allow up to 40%. This is often referred to as a ‘partial repayment’.

Your financial adviser will discuss how partial repayments and early repayment charges work on your specific mortgage, as the terms and conditions differ by product.

Interest servicing

An interest serviced lifetime mortgage offers an interest rate discount if you choose to make monthly payments. If your financial adviser recommends the interest servicing option, an interest rate discount will apply if you make monthly payments of at least 25% of the monthly interest. You can stop making monthly payments at any time, but it's important to note that once you have stopped making them, they cannot be restarted. The interest rate will also increase as the discount will no longer apply for the remainder of your lifetime mortgage.

As an interest servicing customer, if you stop making monthly payments and the interest rate discount no longer applies, you will instead be able to make partial repayments of up to 10% each year of the amount you borrowed without paying any early repayment charges. Your financial adviser will discuss the terms and conditions of your specific lifetime mortgage with you.

How is the money paid back?

The money you release is paid back, in addition to any interest that has built-up, when the property is sold. This is usually when you pass away or move into long-term care.

What are the benefits of Pure Retirement Plans?

✔ Act in a way that ensures the customer is treated fairly and reasonably at all times.

✔ You continue to own 100% of your home, which means you will benefit fully from any future increase in its value.

✔ The interest rate is fixed for life.

✔ The plan is portable so you can move house if you want to, subject to our lending criteria and associated costs.

What are the risks of Pure Retirement Plans?

✔ A lifetime mortgage will affect the amount you leave to love ones when you die.

✔ A lifetime mortgage could affect your entitlement to means tested benefits and can making moving house in the future more complicated.