Product Home Finance Lifestyle Options Lifestyle Image 680X392

Lifestyle Options

Make the most out of your retirement

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

Lifestyle Options product range

Our Lifestyle Options let you unlock a one-off, tax-free payment from your home with no monthly payments. You can spend the money however you like - whether it’s improving your home or simply enjoying your retirement. There’s no need to make repayments and we’ll add the interest to your loan each month.

  • Lifestyle Lite
  • Lifestyle Gold
  • Lifestyle Gold Plus

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

View our rates.

Payments

This product is an interest roll-up lifetime mortgage, which means you don’t need to make any payments. The interest will build up and we’ll add it to your mortgage balance each month.

Additional borrowing

We offer two different types of additional borrowing - a cash reserve facility and a 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 You’ll only pay interest on the cash once you’ve withdrawn it.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 and an offer acceptance form
  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.

0800 068 0212

Further advances

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

You can do this 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 Unbiased 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 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. 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.

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’ll cost. Our charges are set out in the tables below.

Lifestyle Options

Year loan repaid (end of year) Early repayment charge (percentage of total loan)

0-5

5%

6-8

3%

9+        

0%

 


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

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. We won’t charge you for this.

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 a valuation fee to set up this mortgage. You’ll still need to pay a completion fee, as well as solicitor and adviser fees.

View our charges.

Example charges

Valuation fee £0
Completion fee

£650, except on Lifestyle Platinum Cashback (£0)

 

Advice fee As agreed with your financial adviser
Legal fee* £474 +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.

Next Steps

Download a document from the document library

Looking for a form or document?

All the documents you need in one place. From forms and client guides to product brochures and key features documents.

Document Library
Ctas Default Product Adviser Resources Adviser Support CTA 864X480

Adviser support

Find answers to commonly asked questions, helpful links, tools and contact details.

Adviser support
Ctas Default Product Adviser Resources Contact Us CTA 864X480

Get in touch

Call for sales and service

0800 068 0212

or send an email

Monday – Friday 9am to 5pm

Other contacts