Interest servicing
Their Home, Their Equity, Their Way
Empower your clients to borrow their way with an interest serviced lifetime mortgage*, available on both lump sum and drawdown plans.
*Interest servicing with Pure Retirement meets the Equity Release Council's core product standards for lifetime mortgages.
How interest servicing with Heritage works
The interest servicing option can be selected when applying for an initial loan, and an interest rate discount will apply for customers making monthly payments of at least 25% of the monthly interest. After the lifetime mortgage has been set up, the monthly payment amount can't be changed; customers can choose to stop payments at any time.
Illustrative example:
- Property value: £275,000
- initial loan: £60,000
With roll-up
With interest servicing
*if payments maintained
| Property value: £275,000 | Release amount: £60,000 | Based on a Heritage lifetime mortgage plan | ||
|---|---|---|---|---|
| Interest rate | Monthly payments | Amount owed after 15 years | Savings over full interest roll-up | |
| Full interest roll-up | 7.62% MER | £0 | £187,491 | £0 |
| With a 25% or more payment | 7.02% MER (0.60% discount) | £87.75 (Minimum payment) | £143,586 | £28,111 (if payments maintained) |
*Interest serviced example on Heritage Special 2.5 with an estimated 15-year term, price correct as of April 2025.
Interest servicing is currently available on our Heritage range. Interest servicing customers can take up to three monthly payment holidays in every 12-month period. If they miss more than this the interest rate will increase as the discount no longer applies. For further information on Heritage's features, click the link below to view the full plan.
Interest serviced calculator
We've developed a universal lifetime mortgage calculator to help you illustrate how interest servicing works. This can be used with data from any sourcing platform. We'll keep you informed on version updates and usage tips.
Calculate now
What are the benefits of an interest serviced lifetime mortgage?
By servicing the interest monthly, customers not only benefit from reduced interest rates but a reduction in the overall cost of borrowing. Interest servicing customers making regular monthly payments and receiving the interest rate discount will not be able to make additional partial repayments.
- Interest rates discounts available
- Available on lump sum and drawdown lifetime mortgages
- Option to service the interest on additional borrowing
- Three monthly payment holidays in every 12-month period
- Full visibility of their plan and payments with MyPure
- Offering the same great lending criteria as our Heritage lifetime mortgages
Interest servicing with Pure Retirement meets the Equity Release Council's core product standards for lifetime mortgages.
Client scenarios: Interest servicing at work
Explore the full scope of the interest servicing with Heritage lifetime mortgages
Discover our collection of official documents and delve into the details of how interest servicing could benefit your clients.
Visit our Heritage product page for full documentation.Discover Heritage
Do you have any questions about interest servicing?
Our Intermediary Sales Team are on hand to support you whether you have a specific case you'd like to discuss or have some questions about our interest servicing with Heritage lifetime mortgages.