Lifetime Mortgage Drawdown+:


At a glance: Lifetime Mortgage Drawdown+

Our Lifetime Mortgage Drawdown+ can be the right solution for many of your clients looking for a flexible option to manage their finances in later life. We’ve outlined our suitability criteria as an overview:
Lifetime Mortgage Drawdown+
Type of loanLump sum (with facility to draw-down further sums up to the maximum loan).
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 entry95
Minimum initial loan'£10,000
Minimum withdrawal£1,500 for each subsequent withdrawal per calendar month.
Minimum property value£100,000
Maximum property value£5,000,000
Guaranteed detailsThe maximum loan is not guaranteed, there are circumstances when the maximum loan 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 loan runs out.
The interest rate for each withdrawal will be the rate we’re offering at the time your client makes the withdrawal; each withdrawal may have a different interest rate. The rate will depend on the level of borrowing agreed up front. For example, if your client chooses the Drawdown+ Max level, then future withdrawals will be on the Drawdown+ Max new business rate. There are no additional charges for taking withdrawals; all the costs are covered up front.

Early repayment charges

If your client needs to redeem their lifetime mortgage early, there may be an early repayment charge.

We were the first lender to offer fixed early repayment charges. That means we can offer complete transparency and certainty for your client. We calculate charges on the percentage of capital 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 withdrawal 6 years after the initial loan, and repays it 7 years after the initial loan, the early repayment charge will be 3% of that withdrawal.
Year of early repayment% of the amount repaid

When charges don't apply

Early repayment charges do not apply if:
  • The borrower moves house and transfers their mortgage to the new property. Terms and conditions apply.
  • The last surviving borrower dies.
  • The last surviving borrower moves permanently into long term care.
  • The total debt is reduced or fully repaid using the money from an insurance company following damage to the property.
  • A borrower (on a joint mortgage) passes away or moves into long term care and a repayment is made within 3 years of the date of death or move.
  • The borrower chooses to make unlimited repayments of minimum £50 totalling up to 10% of total advances each year.
  • In the unlikely event the remaining reserve is removed and the loan is repaid in full.
  • Downsize protection is included in the policy for full repayment from year 5 onwards. Terms and conditions apply.
Contact Phone

Let's talk

0800 028 8974

8.30am - 5.30pm Mon-Fri

TextDirect: first dial 18001. We will record or monitor calls for training and audit purposes.