Flexible Mortgage Plan Legal and General
“Although the OPLM is different, it still comes with all the lifetime mortgage guarantees, the most important of which is the right to a job for life. If consumers find that they can`t or won`t continue paying monthly interest payments for any reason, they can simply convert into accrual – without much fuss and valuations. If you want to free up money from your home to pay off an existing mortgage, this is one of the options available to you. You cannot purchase a share release product unless you have sought financial advice. Learn how to access independent legal and financial advice. When your client makes their request, they can choose between the 1st and 28th of each month to make monthly interest payments. Once the life mortgage ends, they can`t change their payment date. A life mortgage reduces the remaining equity in your home and the value of an inheritance. A life mortgage is usually paid off when the last borrower dies or leaves home for a long-term care facility.
Yes, your client can pay off their life mortgage early, but they may have to pay a prepayment penalty. The prepayment penalty could be significant. A life mortgage is a way to free up tax-free money from your home without having to move. You can take the money all at once or in smaller amounts, depending on what you need. With our optional payment life mortgage, you can choose to pay some or all of the monthly interest. Monthly interest payments reduce the amount of interest that will accrue over the life of your life mortgage. You can stop monthly interest payments at any time. “The introduction of the OPLM and the FCA`s positive move towards retirement mortgage rules clearly show that Legal & General is part of a wave of innovation in the late-life insurance market. OPLM highlights one of the ways Legal & General delivers on its promise to develop solutions to clients` needs and give borrowers the choice and control they want for their retirement.
This is a guide to the lifetime mortgage products we offer, not personal advice or recommendations. You can only buy a mortgage for life through a financial advisor. A lifetime mortgage is a type of equity release, a loan that is secured against your home and allows you to free up tax-free money without having to move. A life mortgage allows your clients to unlock equity in their home without moving, and is a loan secured by the client`s home. Life mortgages are available to homeowners aged 55 and over. You can take the money as a lump sum or as a series of lump sums. No reimbursement is required until you die or until you leave home to move into a long-term care facility. There are no monthly payments with our flexible life mortgage. Instead, interest is added to the amount they owe each month. Learn more about our range of mortgages for life later or use our simple tool to find out which product best suits your needs. Lifetime mortgages (a type of equity release) and retirement-only mortgages are sometimes grouped together as “Mortgages Later in Life” or “Loans Later in Life” products.
Although they are similar and often used for similar purposes, they are different products, and it is important to understand the differences between the two. There may be cheaper ways for you to borrow money. If your client takes out additional loans (and their lifetime mortgage has not yet been converted to full interest compensation), they may choose to pay some or all of the monthly interest on the additional loan. You will be able to pay any amount each month up to the full monthly interest rate for an additional loan. Your client must tell us how much they want to pay each time they apply for additional loans. A lifetime mortgage reduces an inheritance. It is possible to claim estate protection to secure a portion of the net proceeds of sales of your home. You must be 55 years of age or older and live (or buy) in your own home, either with a small mortgage or without a mortgage.
Your house must be worth at least £70,000 or £100,000 for apartments, duplexes, ex-council, ex-housing association or former Ministry of Defence. Your customer can use our optional partial refund feature, which allows your customer to reduce the amount they owe by making partial repayments without a prepayment charge. This reduces the total amount of interest that accrues on their lifetime mortgage. The UK`s largest lifetime mortgage lender based on total new lifetime mortgages in 2017. The UK is known to be a nation of proud owners. Buying, renovating, renovating and selling real estate might as well be a national pastime. Yet there is one element of homeownership that seems particularly grumpy: the use of a home in retirement planning. “We started looking at lifetime mortgages when we realized there was a real benefit to being able to help our children. We tied up a lot of money in the house and it was a way to free up that money for a better life for us, our children and grandchildren. Could help your clients achieve their retirement ambitions. Some customers can use a lifetime mortgage to: OPLM represents another development of the UK`s largest lifetime mortgage lender and reflects the desire of a growing number of consumers who want to pay monthly interest on their mortgages in retirement.
Helpful tools and resources to help new advisors get started in the lifetime mortgage market. If they choose this product, it could help them reduce the overall cost of the lifetime mortgage. The optional partial repayment feature allows your client to prepay a portion of the mortgage without a prepayment penalty, subject to our lifetime mortgage terms PDF Size: 142 KB If you want the opportunity to free up more equity in the future, an advisor can help you achieve this with a lifetime mortgage. One of the most important things people want to know about lifetime mortgages is the cost of the loan. This answer consists of two parts: A life mortgage is a loan secured by your home. There is no need to make monthly payments. The amount borrowed and additional interest are usually not repaid until you die or until you leave home for a long-term care facility. However, there may be cheaper ways to borrow money.
To tell us about a life mortgage, call our team of advisors at the number below. For more information, please contact us via our contact page Paul Norcott, Head of Mortgages and Insurance at Co-operative Bank, said: “The FCA recognises that there must be solutions to help interest-free mortgage clients retire and we welcome this innovation from Legal & General. The flexibility that the OPLM offers customers to continue to make interest payments and manage the interest premium are real benefits that will appeal to many customers considering the transition to lifetime mortgages. As with other lifetime mortgage products, the interest rate on Legal & General`s OPLM product is set for life, giving clients the long-term peace of mind that their monthly payments will never increase. The product will only be available through intermediaries and in an advisory capacity. Legal & General today announced the launch of its new mortgage product – the Optional Payment Lifetime Mortgage (OPLM). The new product is designed to help the growing number of retired borrowers stuck between the traditional lifetime mortgage and residential mortgage markets.