Equity Mortgage

This plan enables customers to drawdown an initial sum and subsequent additional loans from an agreed cash reserve throughout their lifetime. Initially customers will be able to borrow against an agreed maximum loan based on their ages and property value, and the amount available will increase each year by 1% of the original property value up to a maximum of 35% loan to value (see equity calculator above).

Lump Sum

This plan enables customers to take a one-off lump sum.Again customers can choose to release up to 35% (depending on their age) of their property value with a single one-off transaction (see table on next page). Additional loans are not allowed. Additional option available.

Additional option available
Equity Guarantee. This option allows customers to ring–fence a proportion (either 10% or 20%) of their property value to pass on to their beneficiaries, based on the valuation of their property at outset of the plan. This option is available on both products, and does not affect the loan to value available to customers, as with other plans in the market.
The charges for this option will be made by applying a fixed additional amount to the interest rate applicable on the initial loan for the product selected. A fixed additional amount will also be applied to future interest rates applicable for additional loans on the Increasing Cash Reserve product.

Life basis

The contract is available on both single and joint life basis. Joint borrowers do not need to be married and may be of the same sex. There is a maximum of two borrowers. If the property is in joint names then both owners must apply for the loan. Once the mortgage has completed, no one else can be added to the loan.

For further information, please call us on tel: 01268 573 306 or email us

EQUITY MORTGAGE

Telephone Advice

Because of the complexity of these cases, it is not appropriate to advise clients on Equity Release over the telephone. All advice given in this area should be face to face with you prior to any recommendation being made.

Pre-Approval
All Lifetime Mortgages or Home Reversion Plan recommendations have to be pre-approved by Business Assurance before the application form is signed by the client and submitted to the lender. Please note that all Lifetime Mortgage & Home Reversion Plans will not accept execution only sales. Your advisor will also need to send the originals or copies of the following documents listed below.

• The IDD you provided to the client.
• The Confidential Review, including the Equity Release Section (this should not be signed by the client, until the advice is approved).
• The Key Facts Illustrations.
• Draft Suitability Letter confirming the advice you are planning to give.
• Any other supporting documentation you feel is relevant, i.e. additional notes.