Lifetime Mortgage Lump Sum Lifestyle Interest Reward:
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Lump Sum Lifestyle Interest Reward client suitability
A lifetime mortgage that supports your clients today and rewards regular interest payments with a discounted rate, helping them plan for the future.
Clients who would be suitable
Our Lump Sum Lifestyle Interest Reward product is designed for clients who:
- Are 55 to 90 years old.
- Own a property worth more than £100k which is in England, Wales or Scotland.
- Wish to release a modest-to-significant amount of equity from their home.
- Are able to pay some or all of the interest each month for an agreed period.
- Want to know about any early repayment charges upfront.
- Would like the option of protecting some of their equity for their beneficiaries.
- Would like the option of downsize protection if they move to a new property which doesn’t meet our lending criteria.
Clients who wouldn’t be suitable
Our Lump Sum Lifestyle Interest Reward product is not designed for clients who:
- Are under the age of 55 or over the age of 90, or couples where one person is under 55 or over 90.
- Do not meet our eligibility criteria or property lending criteria.
- Are not willing to commit to regular interest payments upfront or prefer to make ad hoc voluntary repayments.
- May want access to smaller withdrawals in the future.
- Have other means of accessing income or capital and may not need a lifetime mortgage.
- Want to use the lifetime mortgage funds for reasons we would consider risky, such as investing.
- Want a short-term loan which they intend to fully repay within a few years.
- Do not plan to live in the property as their main home or would like to rent it out.
- Are currently receiving or eligible for means tested State Benefits.
For further information, including the implications of a lifetime mortgage not being suitable for a customer's needs and circumstances, please read our product profile.
Standard lending criteria for clients
We’ll lend to an applicant who:
- Is aged between 55 and 90.
- 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 £10m (properties valued £1.5m or over will require individual underwriting).
- Is the sole or joint owner of the property if married/civil partnership/co-habiting 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.
For more information, please refer to our Lending Policy Guide.
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
If your client is living with their partner, civil partner, or spouse, they'll both need to be named on the property deeds and in their Lifetime Mortgage Lump Sum Lifestyle Interest Reward 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 requirements 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 than what we ask for, or repays the lifetime mortgage in full, we many charge an early repayment charge.
- Please note the ability to transfer the lifetime mortgage is not guaranteed.
Equity Release Council
We’re a member of the Equity Release Council. Their standards aim to protect your clients through their code of conduct. That’s why we’re clear on our offering – with additional features and safeguards to our lifetime mortgage products.
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