Although this is essentially an enhanced lump sum equity release mortgage, Just Retirement will consider a further cash advance six months after the plan has commenced; should calculations dictate additional borrowing is available.
As the Just For You Lifetime Mortgage enables you to design your own plan, additional features. These options must be selected prior to offer and induction of the plan.
One option is selecting a Cash Facility option, Just will integrate a drawdown facility into the scheme. Therefore, once the maximum loan is calculated - based on age and property value, Just will provide a drawdown facility based on the funds remaining after the initial lump sum is withdrawn.
This reserve is subject to an overall maximum £200,000 drawdown facility, with the minimum withdrawal amount being £2,000 a time and comes with no administration charge. By choosing this Cash Facility, the interest rate and subsequent cash withdrawal rates will be increased by 0.1% to the standard terms.
A second option is to make monthly repayments. These payments can be selected only at outset of the plan and can be gauged based on affordability.
Just provide interest rate tiers for the monthly payment options starting with 0.01% discount if servicing up to 25% of the monthly interest amount, to 0.30% discount if servicing between 75.01%-100% of the monthly interest amount.
Selecting 100% repayment of interest, will actually maintain a level mortgage balance throughout the term; in essence managing the plan as an interest-only lifetime mortgage.
Just impose a minimum payment amount towards the scheme of £25pm, or upto 100% of the monthly interest charged. Payments can be made on the 1st or 15th of the month.
The Just For You Lifetime Mortgage will permit payment holidays - with restrictions. One payment holiday of upto three consecutive months can be taken in each 12 month period. Any payments missed will be added to the loan balance and compounded thereafter.
The Just For You plan will also allow monthly payments to be stopped at any time without penalty. However, once payments are stopped, they cannot be restarted. The plan will then effectively run as a roll-up lifetime mortgage with the interest rate being increased by the initial discount provided at the outset.
Should the Interest Servicing facility not be selected, then there is another method of making repayments with greater flexibility. This is by using the voluntary payment option whereby upto 10% of the original amount borrowed can be repaid each year without penalty.
Again, like the interest serviced option, no proof of income is required to make voluntary payments, nor are there any affordability checks made by Just. No weighting to the interest rate is made by opting for voluntary payments.
Just allow no more than a total of six payments to be made in any 12 month period, with a minimum of £500 each time. A minimum overall balance of £10,000 must still be remaining following any payment.
Another feature that will benefit joint homeowners is the 3-year window of opportunity for repayment with no penalty, should either partner die, or move into care. On such an event, the survivor has three years to repay the equity release loan without any early repayment charge.
*the Just For You Lifetime Mortgage offers cashbacks of upto £3,000 and application fees between £0 and £600, dependent upon age and loan-to-value.
**the rate quoted applies to homeowners age 55+ making no payments
To obtain further information or to request a quotation on the Just For You Lifetime Mortgage - Enhanced plan, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.