Frequently Asked Questions

The Just For You Lifetime Mortgage has been created to enable your clients to live better lives in retirement. Below are some FAQs we've produced to help answer any questions you may have around the product. 

Why have you developed an interest serviced option? Isn't this a tiny area of the market?
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We've developed this option to offer flexibility for your clients in a growing market. It could appeal to those who have an interest only residential mortgage with no means of paying it off. Although equity release can be used to repay existing debts it may end up costing the customer more in the long term.

Why should I use your product ahead of other providers that offer interest serviced products?
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Our USPs in this area are:

- The reduced rates offered from the roll up rate to those clients who make monthly payments over those customers who do not choose this option

- Our payment holiday feature.

What is the impact of interest servicing on rate?
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If the interest servicing option is chosen, there will be a reduction to the roll-up interest rate as documented in the client's offer letter. The higher percentage of interest they pay monthly, the higher the reduction in rate. 

Can my clients start servicing interest on existing plans?
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Customers cannot simply switch to servicing the interest as this is a new product feature with different Terms & Conditions. If they wish to take advantage of the monthly payment option, they'll need to redeem and re-apply if this is the recommended course of action following financial advice which they must seek in the first instance.

Will I be paid on any subsequent drawdowns clients make if they don’t access their full facility at the outset?
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Yes, providing it meets your current terms. There are no plans as part of our product refresh to change the drawdown process.

Can someone else contribute towards my client’s mortgage each month?
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Although family or friends could contribute to payments, we can only accept the monthly payments by Direct Debit from the customer's own personal bank account.

Will rates differ depending on the amount of repayments made every month?
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Yes. There will be a reduction to the current roll-up rate if the interest servicing option is chosen. We have four tiers of reduction, the higher percentage of interest being serviced each month, the higher the reduction to the current rate.

 

Why can’t I submit applications to you electronically?
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We don't yet have online capability but this is something we are working on.