Here’s everything you need to know about our Lifestyle Select Options – key features, how they work, helpful links, guides and brochures.
Lifestyle Select Options product range
Our Lifestyle Select Options let you unlock a one-off, tax-free payment from your home with the flexibility to repay up to 10% of the initial loan each year, without any early repayment charges. You can spend the money however you like - whether it’s improving your home or simply enjoying your retirement.
- Lifestyle Select Lite
- Lifestyle Select Super Lite
- Lifestyle Select Ultra Lite
Each of our Lifestyle Select Options offers different amounts you can borrow with different interest rates.
View our rates.
Our Lifestyle Select Options allow you to make voluntary payments of up to 10% of the initial loan amount each year, without early repayment charges.
You choose when to make payments and how much you’d like to pay back, up to your 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
- 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
- You can make voluntary payments by standing order or bank transfer
- We’ll send you a standing order form when your mortgage completes and full details of your other payment options
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.
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 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:
- Contact our customer services team on 0800 068 0212
- You’ll need to let us know how much you want to withdraw and what you’ll use the money for
- We’ll send you an Offer Letter and an Offer Acceptance Form. Make sure you read your Offer Letter carefully to understand how interest will affect the size of your loan in the future
- Once you’re happy, complete the form and send it back to us
- We’ll undertake some checks and make sure your application meets our lending criteria
- Once our checks have been completed, we’ll pay the money directly into your bank account
We apply a fixed interest rate to each cash reserve facility withdrawal, based on the rate at the time you apply. This might be higher or lower than the interest rate we applied to your initial advance.
- 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
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?
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?
- Seek advice from your financial adviser. You can find an adviser at the Equity Release Council if you don’t have one
- Your financial adviser will contact us to start the application process
- We’ll send them an application form. They’ll discuss this with you and help you complete it
- 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.
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.
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 Select Options
|Year loan repaid (end of year)||Early repayment charge (percentage of total loan)|
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 make an overpayment
You'll always own your home and be responsible for maintaining it, as long as you follow the terms and conditions of the mortgage.
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 won't 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.
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 this case, you’d need to repay part of the loan.
Read our guide to porting.
No negative equity guarantee
This guarantee is applied when your property is sold for a fair market price, and as long as you have adhered to the terms and conditions of the mortgage. It means that when the property is sold, if the proceeds after solicitors’ and estate agents’ fees are not enough to pay the amount owed to us, we won't ask you or your beneficiaries to pay the shortfall. If your property is sold for more than the amount you’ve borrowed against it, the amount left over belongs to you or your beneficiaries.
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.
|Advice fee||As agreed with your financial adviser|
|Legal fee*||£799 +VAT (estimated)|
*You may also need to pay disbursements
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.