Lifetime Mortgage Drawdown Lifestyle:

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Lifetime Mortgage Drawdown Lifestyle

To help you make an informed decision on your client’s eligibility, we’ve outlined our Lifetime Mortgage Drawdown Lifestyle suitability criteria, at a glance:
Lifetime Mortgage Drawdown Lifestyle
Type of loanLump sum (with facility to drawdown further sums up to the maximum cash facility).
Entry qualificationSingle borrower or joint borrowers.
EligibilityYour client will have to be a resident in the UK and should be able to provide a UK address history covering the last 36 months. They must have a permanent right to reside in the UK.
Minimum age attained at entry55
Maximum age attained at entry90
Minimum starting loan£10,000
Minimum withdrawal£500 for each subsequent withdrawal per calendar month.
Minimum property value£100,000
Maximum property value£10,000,000
Guaranteed detailsThe maximum cash facility is not guaranteed, there are circumstances when the maximum cash facility may be reduced or removed, which are defined in the Terms and Conditions.
Withdrawal frequencyAs requested (but cannot be more than once per calendar month) until maximum cash facility runs out.
Maximum loanWe offer various borrowing levels for your client to choose from. The maximum cash reserve is determined as a percentage of the property value, using the age of the youngest applicant and the borrowing level selected.

Read our loan to value scale.

The interest rate we will charge on withdrawals will be based on the prevailing new business rate at the time the withdrawal is made.

Early repayment charges

There can be financial consequences of redeeming the lifetime mortgage early. As the first lender to offer fixed early repayment charges, we’re able to give complete transparency and certainty to your clients of what these charges will be.

We calculate charges on the percentage of loan amount repaid – it doesn’t include any accrued interest. Charges are based on the initial loan date, excluding additional borrowing. For example, if your client takes a withdrawal 4 years after the initial loan, and repays it 6 years after the initial loan, the early repayment charge will be 3% of that withdrawal.

Year of early repayment% of the loan amount repaid
17%
26%
35%
44%
5-83%
8+0%

When charges don't apply

Early repayment charges do not apply if:
 
  • The borrower moves house and transfers their mortgage to the new property.
  • The last surviving borrower moves permanently into long term care.
  • The last surviving borrower dies.
  • A borrower (on a joint mortgage) passes away or moves into long term care and a repayment is made within four years of the date of death or move.
  • The borrower fully repays after 5 years and moves to a property they wished to transfer their lifetime mortgage to that did not meet our lending criteria.
  • The total debt is reduced or fully repaid using the money from an insurance company following damage to the property.
  • We no longer offer new Lifetime Mortgage Drawdown Lifestyle products and access to the cash facility is subsequently removed for all Drawdown Lifestyle customers and the borrower decides to fully repay the lifetime mortgage.
  • The borrower chooses to make repayments totalling up to 11% of total advances each year.

Please note terms and conditions apply. For more information see our Drawdown Lifestyle terms and conditions.
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0800 028 8974

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