Our Lump Sum Plus Lifetime Mortgage
Our Lump Sum Plus Lifetime Mortgage is designed to help clients who want access to the maximum possible share of the money locked up in their home.
The product offers two loan to value (LTV) tiers:
- Our standard LTV gives your clients quick and easy access to a larger lump sum than would be available through our Drawdown Lifetime Mortgage, but usually at a higher interest rate.
- Our enhanced LTV uses our expert underwriting capability to give clients the potential to borrow an even higher amount based on their medical and lifestyle conditions.
Your client won't need to make any repayments on the money borrowed, and will continue to own their home, benefiting from any increase in its value.
How does it work?
The interest payable on our Lump Sum Plus Lifetime Mortgage is fixed at the time the mortgage is taken out, and is guaranteed not to change regardless of what happens to interest rates in the future.
Interest is charged on the lump sum cash advance, and will accumulate on a compound basis. The mortgage plus interest is only repaid once your client dies or moves permanently into care.
Use our Lump Sum Plus Lifetime Mortgage Calculator to find out the maximum amount and loan-to-value (LTV) rate available to them.
Please note that the interest rate on our Lump Sum Plus Lifetime Mortgage is usually higher than the rate charged under our Drawdown product. Clients can borrow a higher amount with the Lump Sum Plus Lifetime Mortgage, which could be invaluable if they need access to the money – but the value of their mortgage will be higher than an equivalent Drawdown Lifetime Mortgage product at the time it is repaid. Find out more about the Drawdown Lifetime Mortgage
Key features are summarised below:
|Feature||Lump Sum Plus Lifetime Mortgage|
|Minimum property valuation||£70,000|
|Maximum LTV||Between 29% and 54%, dependent on client's age, property value, health and lifestyle conditions|
|Maximum cash advance||The lower of £600,000 (England only. £250,000 in Scotland and Wales) or the maximum LTV. A lump sum cash advance is provided at the outset, and there will be NO guaranteed unused cash facility to draw down additional cash advances. Please note that a different interest rate may apply to mortgages written on enhanced LTV terms. Further cash advances may be requested after 6 months from the policy start date, however these further cash advances are not guaranteed|
|Minimum cash advance||£10,000. Please note that the Drawdown Lifetime Mortgage may be more suitable for lower loan amounts, as the interest rate charged on the Lump Sum Plus Lifetime Mortgage will usually be higher|
|No negative equity guarantee||Applies on death or sale of property at any time, and includes reasonable costs of sale|
|Interest rate of charge||Fixed interest rate set at the time of the lump sum cash advance.
Interest is compounded annually. Please note that a different interest rate may apply to mortgages written on enhanced LTV terms
|Death or moving into permanent long term care||Repayment of mortgage (with no early repayment adjustment)|
Latest Lump Sum Lifetime Mortgage rates
Our current interest rate of 5.75% AER applies across all of our age bands (the minimum age for our Lump Sum Lifetime Mortgage is 60). The overall cost for comparison is 5.9% APR. This rate is valid as of February 2017.
Lump Sum Plus LTV
Our age-related maximum loan-to-value factors are valid as of February 2017:
|Client age||Lump Sum Plus
|Lump Sum Plus