Capital Select Options

A flexible way to unlock money from your home

Make the most of your retirement by unlocking tax-free cash from your home. Our Capital Select Options give you the flexibility to make repayments when it suits you. You can choose to repay up to 10% of your loan each year and there’s no penalty if you decide not to make repayments.

Here’s everything you need to know about our Capital Select Options ­– key features, how it works, helpful links, guides and brochures.

Our charges

This document sets out the main costs that you may incur during the course of your mortgage term.
View our charges.

Our Capital Select Options

Our Capital Select Options are flexible lifetime mortgages. You can pay back up to 10% of the initial loan amount each year, without any early repayment charges. They give you the freedom to choose when to make payments and how much you pay back each year.

  • Capital Select Super Lite
  • Capital Select Lite
  • Capital Select Gold
  • Capital Select Gold Plus
  • Capital Select Platinum
  • Capital Select Platinum Plus

Each of our Capital Select Options offers different amounts you can borrow with different interest rates.

Voluntary payments

Our Capital Select Options allow you to make voluntary payments of up to 10% of the initial loan amount each year, without any early repayment charges.

For example, if you decide to borrow £50,000, you can choose to pay back up to £5,000 each year without any penalties.

Making payments

You choose when to make payments and how much you’d like to pay back, up to your annual allowance. The minimum payment is £50 each year.

Annual allowance

  • The annual allowance is 10% of the initial loan amount. This is the amount you can repay in one year without charges
  • Your annual allowance starts on the day your mortgage completes and ends a year later on the day before your completion date. For example, if your mortgage completes on 1 July, your annual allowance starts on 1 July and finishes on 30 June the following year
  • If you don’t use your full allowance, it won’t roll over into the following year. For example, if you repay 5% in year one, your allowance won’t increase to 15% in year two

Payment frequency

  • You choose when to make payments
  • We accept payments from the first day your mortgage completes
  • You can make as many payments as you like up to your annual allowance and there’s no maximum number of payments
  • You can continue to make payments if you borrow more money at a later date
  • You can make regular payments by standing order

Making payments

  • You can make voluntary payments by standing order, bank transfer or debit card
  • We’ll send you a standing order form when your mortgage completes and full details of your other payment options

Stopping payments

  • There’s no penalty if you choose not to make a payment. We’ll add the interest to your outstanding loan balance each month.

How payments affect your loan

We give you control over your mortgage balance by letting you choose when to make payments and how much you pay back each year.

Your payments are completely voluntary, so there’s no penalty if you don’t make a payment.

Additional borrowing

We offer two different types of additional borrowing – a cash reserve facility and further advance.

Cash reserve facility

When you take out a lifetime mortgage with us, you can take an initial amount and keep the rest in a cash reserve. You can then access this money later when you need it. You’ll only pay interest on the cash once you’ve withdrawn it.

You won’t need to take financial advice each time you want to withdraw money from your reserve. You can make annual payments towards your additional borrowing in the same way as you make payments for your main mortgage.

If you choose to add a cash reserve facility, you’ll need to do this at the start of your lifetime mortgage. It can’t be added at a later date.

Making a withdrawal

You can withdraw from your cash reserve facility at any time. To make a withdrawal:

  1. Contact our customer services team on 0800 068 0212
  2. You’ll need to let us know how much you want to withdraw and what you’ll use the money for
  3. We’ll send you an Offer Letter and an Offer Acceptance Form. Make sure you read your Offer Letter carefully to understand how interest can cause your loan to increase over time
  4. Once you’re happy, complete the form and send it back to us
  5. We’ll undertake some checks and make sure your application meets our lending criteria
  6. Once our checks have been completed, we’ll pay the money directly into your bank account

Interest rates

We apply a fixed interest rate to each cash reserve facility withdrawal, based on the rate at the time you apply. This may be higher or lower than the interest rate we applied to your initial advance. 

View our additional borrowing interest rates.

Important information

  • The minimum withdrawal amount is £2,000 and the maximum is the total of your cash reserve. If the remaining amount is less than £2,000, you’ll need to withdraw the amount in full
  • Your cash reserve amount is fixed at the outset and won’t increase in line with the property value, your age or repayments
  • You won’t be able to add a cash reserve facility at a later date. It needs to be included when you set up your lifetime mortgage

Find out more

Get in touch with our customer services team to find out more about additional borrowing, or to find out the remaining balance of your existing cash reserve facility.

Call us on 0800 068 0212.

Further advances

A further advance allows you to borrow more funds from your property.

You can do this at any point, as long as your application meets our lending criteria and there’s still enough equity in your property.

Do I qualify?

In order to apply, you’ll need to:

  • Take additional financial advice
  • Borrow a minimum of £4,000
  • Let us know what you’re using the money for

How do I apply?

  1. Seek advice from your financial adviser. You can find an adviser at the Equity Release Council if you don’t have one
  2. Your financial adviser will contact us to start the application process
  3. We’ll send them an application form. They’ll discuss this with you and help you complete it.
  4. If your application is successful, we’ll pay the money directly to you

You can make annual payments on the additional borrowing after your application has been successful.

If you take a further advance, the value of your property might need to be reassessed and you may have to pay additional fees, including fees for financial advice. Your financial adviser can provide more details.

View our charges.

Interest rates

We apply a fixed interest rate to each further advance. This is based on the further advance interest rate for your product, at the time you apply. This rate may be higher or lower than the interest rate applied to your initial advance. Please read your Offer Letter carefully to understand how interest will affect the size of your loan in the future.

View our additional borrowing rates.

Fixed early repayment charges (ERCs)

You can choose to repay some or all of your mortgage at any time, but an early repayment charge may apply if you repay your loan earlier than expected.

Our early repayment charges apply for the first eight years of the initial advance, cash reserve facility withdrawal or further advance.

Our early repayment charges are fixed so you know exactly how much it will cost. Our charges are set out in the tables below.

Capital Select Options

Year loan repaid (end of year) Early repayment charge (percentage of total loan)
0-5 5%
6-8 3%
9+ 0%

Cashback variants

Year loan repaid (end of year) Early repayment charge (percentage of total loan)
0-5 8%
6-8 6%
9+ 0%

Early repayment waivers

We know that sometimes life changes and you may want to repay your mortgage. That’s why we offer two waivers:

  • Downsizing protection - if you decide to downsize after five years, you won’t need to pay an early repayment charge
  • Early repayment waiver for joint borrowers - you won’t need to pay an early repayment charge if you decide to repay the lifetime mortgage within three years of the date that the first borrower dies or goes into long-term care

We also won’t apply an early repayment charge where:

  • Repayment takes places after your death or the death of the remaining borrower
  • You or the remaining borrower move into long-term care
  • The early repayment charge term has expired
  • You sell the property and transfer the mortgage to another suitable property
  • You stay within your 10% annual contribution allowance

Product features

Retained ownership

You will always own your home and be responsible for maintaining it, as long as you follow the terms and conditions of the mortgage.

No repossession

You’ll be able to live in your home until you die or move into long-term care, as long as you follow the terms and conditions of the mortgage. Your home will not be repossessed if you don’t make payments.

Fixed interest rates

Your mortgage interest rate will remain fixed for as long as you have it. We also apply fixed interest rates to any additional borrowing. The rate for additional borrowing is set at the time you apply and can be different from the initial loan interest rate.

Inheritance guarantee

You can choose to protect a percentage of the eventual sale value of your home at the start of your loan. The percentage you choose to protect is guaranteed to be available to you or your beneficiaries in the future. 

Option to move home (porting)

If you want to move home, you may be able to take the mortgage with you. This is known as porting. You’ll also keep the same terms and conditions if it meets our suitability criteria. If you move to a property of lower value, it may mean we’re unable to lend you the amount you currently owe. In these cases you’ll have to repay part of the loan.

Read our guide to porting.

No negative equity guarantee

When your property is sold and the proceeds after solicitors’ and estate agents’ fees are not enough to pay the amount you owe, we won’t ask you or your beneficiaries to pay the shortfall. Any amount left over from the sale of your property will belong to you or your beneficiaries, if your property is sold for more than the amount you borrowed.

Our charges

We won’t charge you any fees to set up this mortgage. This means there’s no valuation or completion fee. You’ll still need to pay solicitor and adviser fees.

View our charges.

Example charges:

Valuation fee £0
Completion fee £0
Advice fee As agreed with your financial adviser
Legal fee* £799 +VAT (estimated)

*You may also need to pay disbursements

Client documents

Risk warning

A lifetime mortgage is a loan secured against your home. It will reduce the amount of inheritance you leave and may affect your tax position and entitlement to welfare benefits.