We understand having control and choice over income in retirement is important for your clients. Our Lifetime Mortgage Drawdown+ is designed to give flexibility – offering stability and peace of mind.
Our Lifetime Mortgage Drawdown+ product allows your clients to drawdown equity from their property over a period of time. The product provides the flexibility to release further withdrawals from a pre-agreed reserve.
Lifetime Mortgage Drawdown+:
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Servicing
Lifetime Mortgage Drawdown+ key features
Clients who would be suitable
Our Drawdown+ product is designed for clients who:
- Are 55 to 84 years old.
- Need the option to borrow more later on, from a pre-agreed cash facility.
- Need clarity about when the pre-agreed cash facility will/will not be paid, as outlined in the product's terms and conditions.
- Own a property worth more than £100k which is in England, Wales or Scotland.
- Require a lump sum of at least £10k with the flexibility of future withdrawals.
- Want to know about any early repayment charges upfront.
- Do not intend to repay the loan during their lifetime.
- Would like the certainty of knowing upfront what the charges would be if they did.
Clients who wouldn’t be suitable
Our Drawdown+ product is not designed for clients who:
- Are under 55, or couples where one person is under 55.
- Want to guarantee that some, or all, of their property is protected from interest roll up to provide an inheritance.
- Need to maximise the release of equity upfront (where a Lump Sum product could be more suitable).
- Do not need the flexibility of future withdrawals.
- Have other means of accessing income or capital and may not need a lifetime mortgage.
- Are currently receiving or eligible for means tested State Benefits.
For further information read our Equity Release Product Profile.
Meet Ian
Meet Ian
Ian is a recently retired builder. He’s married and lives in greater London – his semi-detached house is worth £510k and it’s mortgage-free. With a former annual income of £19k, Ian is looking to fill a pension shortfall with a regular income boost.Our Lifetime Mortgage Drawdown+ would suit Ian: he has inexpensive taste and has good money management, so would welcome a modest income top-up. He’d like to raise some extra cash without needing to move, but wants the option if his situation changes (his home is large, and he may not always need the extra space). Ian’s career has taken its toll on him physically, so added value benefits such as LV= Doctor Services and Care Navigator would be beneficial to him.
Standard lending criteria for clients
We’ll lend to an applicant who:- Is aged between 55 and 84.
- Is a UK resident with a UK address history covering the last 36 months, and has a permanent right to reside in the UK.
- Is able to prove their identity.
- Has a property valued between £100k and £5m (properties valued £1m or over will require individual underwriting).
- Is the sole or joint owner of the property if married/civil partnership/cohabiting couple. Standard joint occupancy requires both borrowers to be on the deeds of the property and the lifetime mortgage application.
- Is low risk on our credit search report.
Lifetime Mortgage client suitability guide
Help personalise your service and match your client’s needs to the most suitable LV= Lifetime Mortgage. Our suitability guide helps identify when equity release is the right solution, finding the most appropriate lifetime mortgage.
Keeping clients in their home
Your clients can stay in their home - as long as it’s their legal right, and they meet the terms and conditions of their mortgage.
Your clients need to understand how the terms and conditions of their lifetime mortgage will affect them. They'll need to:
- Keep adequate building insurance.
- Keep up the maintenance of the home so it remains in the condition it was when the lifetime mortgage was taken out.
- Obtain permission from us before they allow any other person to live in any part of their home.
Other people living in the property
Your client’s partner, civil partner or spouse will need to be named on the property deeds and their Lifetime Mortgage Drawdown+ application.
- If there are friends or family living in the property, or children aged 17 or over they’ll need to sign an occupancy waiver releasing their rights to the property.
- Those who are incapable of signing a waiver, for example due to disability, may have an occupancy waiver signed by a suitable power of attorney. The attorney must not be an applicant for the loan.
- Individuals under 17 do not need to sign a waiver of occupancy.
- If your client has any tenants or lodgers living with them, you'll need to contact us first before an application is submitted.
Moving home
Your client can move when their lifetime mortgage is up and running. The new home will need to meet our lending criteria at that time.
- If the new property is less expensive, we may ask your client to pay back part of the outstanding mortgage.
- If your client needs to pay back part of the outstanding mortgage, there won’t be an early repayment charge.
- If your client chooses to pay back more, or repay the lifetime mortgage in full, we may charge an early repayment charge.
- Please note the ability to transfer the lifetime mortgage is not guaranteed.
Member of the Equity Release Council
We’re a member of the Equity Release Council – they aim to protect your clients through their code of conduct. We offer additional features and safeguards on our lifetime mortgage products.
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