A Lifetime Mortgage from Responsible Lending, as the name suggests, is a mortgage secured against your home. They are designed to meet the needs of customers in retirement.
You can convert some of the equity in your home into tax-free cash to achieve your retirement aims.
There are no required monthly repayments throughout the term of the loan, instead the interest is added to the loan and repaid when the mortgage is redeemed.
The interest on the loan is fixed for life. There is no need to worry about increasing interest rates.
The loan does not have to be repaid during your lifetime. You can stay in your property for the remainder of your life or until you enter into long-term care.
With the drawdown product you will have the flexibility to access additional funds to achieve your retirement ambitions as and when your circumstances change.
The loan has a no negative equity guarantee, meaning that you and your loved ones will never owe more than the value of your home.
How much money you can take out depends on how much your home is worth and your age at the time of application (age of youngest applicant will apply).
The basic requirements for Responsible Lending Lifetime Mortgages are:
You must be a homeowner with equity in your property
Meet the minimum age requirements
You must reside in the UK
Your Responsible Lending Key Facts Illustration provides full details of the features of your Responsible Lending Lifetime Mortgage. We offer the following Lifetime Mortgages.
All our Lifetime Mortgages are secured against your home and allow you to release equity from your home without having to make monthly repayments.
The interest rate for each advance is fixed for life and set at the time the advance is taken.
Interest will build up each year on a compound basis, meaning that interest is charged each year on the amount of the mortgage as well as interest from previous years. The more years that pass before the mortgage is repaid, the bigger the final total interest charge.
The mortgage must be repaid when you (or both of you, if you are borrowing jointly) have died, or moved into permanent long-term care. For example, this might be if you move into a care home or live with and are cared for by relatives on a permanent basis due to medical necessity.
The Lump Sum Lifetime Mortgage is designed for those who want to release a one-off lump sum without the option to access more money in the future from a pre-agreed cash facility.
The age of the youngest applicant must be 55 or over, and interest rates can be lower than a similar size loan with a cash facility.
We've designed the Drawdown Lifetime Mortgage to let you release an initial lump sum now, with the option to take extra amounts in the future. With this mortgage you may borrow a smaller amount at first (subject to a minimum) and borrow extra amounts at a later date from a pre-agreed cash facility.
You are free to use your unused cash facility when you decide. However, each time you must take a minimum amount, as set out in your Key Facts Illustration. Access to the cash facility is subject to terms and conditions.