Here’s everything you need to know about our Prestige Option – key features, how it works, helpful links, guides and brochures.
Our Prestige Option
Our Prestige Option allows you to release a cash lump sum from your high value property without you having to make any payments.
Each of our products offers different amounts you can borrow with different interest rates.
View our rates.
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.
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 You’ll only pay interest on the cash once you’ve withdrawn it.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:
- 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 and an offer acceptance form
- Once you’re happy, complete the form and send it back
- 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 may be higher or lower than the interest rate we applied to your initial advance.
View our additional borrowing interest rates.
- 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.
A 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?
- 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
- 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.
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 ten years of the initial advance, cash reserve facility withdrawal or further
Our early repayment charges are fixed so you know exactly how much it’ll cost. Our charges are set out in the tables below.
|Year of repayment (end of year)||Percentage of the borrowing payable|
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 will 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 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.
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 the property is sold for more than the amount you borrowed.
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||£474 +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.
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