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 regular 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 age | 55 |
| Minimum property valuation | £70,000 |
| Maximum LTV | Between 23% and 54.5%, 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 when property is sold following death or moving into permanent long-term care |
| 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) |
| Early Repayment Charge (ERC) | No ERCs for joint borrowers, if repaid within three years of the death, or entry into permanent care of one borrower. |
| ERC free partial repayments | Can make partial repayments without incurring ERCs. Able to pay back up to 10% of each advance in each 12 month period following completion. Subject to no more than a total of 6 payments in the relevant 12 month period for each advance. The minimum amount customers can pay in each instalment is £500, and the overall amount owed must not fall below £10,000. If there is more than one advance, the amount of any partial repayment will be allocated between the advances in proportion to the amount owed on each advance. For existing customers, different terms and conditions may apply depending on when your client took out their lifetime mortgage. Please refer to the lifetime mortgage documentation they were given at the time of completion, or contact us > |
Latest Lump Sum Lifetime Mortgage rates
Our current interest rates range from 5.71% AER to 6.00% AER, dependent on the customer's age (the minimum age for our Lump Sum Lifetime Mortgage is 55). These rates are valid as of December 2018.
The interest rate that will apply to the further advance requested will be determined by the customer’s new total accumulated loan balance and the relevant loan to value scale. We have three LTV scales – Drawdown, Lump Sum Lite and Lump Sum Plus.
Lump Sum Plus LTV
Our age-related maximum loan-to-value factors are valid as of December 2018:
|
Client Age |
Single |
Joint |
| 55 | 23.9% | 23.0% |
| 56 | 24.9% | 24.0% |
| 57 | 25.9% | 25.0% |
| 58 | 26.9% | 26.0% |
| 59 | 27.9% | 27.0% |
| 60 | 29.4% | 29.0% |
| 61 | 30.9% | 30.5% |
| 62 | 31.9% | 31.5% |
| 63 | 32.9% | 32.5% |
| 64 | 33.9% | 33.5% |
| 65 | 35.0% | 34.6% |
| 66 | 36.1% | 35.7% |
| 67 | 37.2% | 36.8% |
| 68 | 38.3% | 37.9% |
| 69 | 39.4% | 39.0% |
| 70 | 41.1% | 40.1% |
| 71 | 42.2% | 41.2% |
| 72 | 43.4% | 42.4% |
| 73 | 44.6% | 43.6% |
| 74 | 45.8% | 44.8% |
| 75 | 47.5% | 47.0% |
| 76 | 48.5% | 48.0% |
| 77 | 49.5% | 49.0% |
| 78 | 50.5% | 50.0% |
| 79 | 51.0% | 50.5% |
| 80 | 52.0% | 51.5% |
| 81 | 53.0% | 52.5% |
| 82 | 53.5% | 53.0% |
| 83 | 53.5% | 53.0% |
| 84 | 53.5% | 53.0% |
| 85+ | 54.5% | 54.0% |
