Legal & General Optional Payment Navy Interest Only Mortgage

Compare Deals Interest Only Optional Payment Navy

Optional Payment Navy

Type Fixed
Rate 3.92%
APR 4.10%

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Incentives:

Cashback
Free Valuation
Free Application

Offers:

Interest-Only Monthly Payments
Inheritance Protection Guarantee
10%pa Optional Partial Repayments
3-Year No Early Repayment Charge*
Downsizing Protection Feature

Background

Legal and General Home Finance entered the equity release marketplace in early 2015 by acquiring existing lifetime mortgage company New Life Mortgages. This enabled them a quicker route to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.

Legal & General started life with a range of flexible drawdown lifetime mortgage plans and high maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function. More recently they have introduced income plans along with optional payment schemes - effectively interest only lifetime mortgages. L&G are looking to fulfill the increasing demands of retirement living and develop plans to meet the expanding post retirement lending marketplace.

Eligibility

The Legal & General Flexible Optional Payment Navy Lifetime Mortgage (OPLM) is specifically designed for those looking to make monthly payments of interest for a specific term; be it a fixed term, or over the lifetime of their mortgage.

This Optional Payment Navy Plan has one of the higher interest rates within Legal & General Home Finance interest-only mortgage range. The OPLM Navy plan offers the discipline of fixed interest monthly repayments to help control the balance.

The OPLM Navy Plan provides a higher maximum release than its Optional Payment Blue plan counterpart, but lower release than the OPLM Indigo. Consequently, the OPLM Navy has a correspondingly higher comparable monthly payment than the Blue, yet lower than the OPLM Indigo.

The minimum property valuation applicable to this Optional Payment Navy Lifetime Mortgage is £100,000, with a figure of £100,000 for ex-council properties. A maximum property valuation outside London is £2m, with properties in London being acceptable upto £4m. Contact us on Freephone 0800 802 1051 if valuation is higher.

The location of the property which must be a main residence, needs to be situated in England, Wales or mainland Scotland. For flats and maisonettes, Legal and General will only base their calculations on 85% of the current market valuation. Additionally, should the property be leasehold then the minimum number of years remaining must be at least 185 years.

The L&G Optional Payment Navy Lifetime Mortgage is available on both a single and joint life basis. The minimum age of the youngest homeowner starts from age 55, with a typical maximum age of 90. In certain circumstances an age of 90+ can be acceptable – if so, please contact the team on Freephone 0800 802 1051.

The minimum loan for this OPLM Navy plan is £10,000 with a maximum release of £750,000. For loans greater than £750,000, bespoke quotations are available via Equity Release Supermarket. Please call 0800 802 1051 for your personalised OPLM Navy Key Facts Illustration.

Features

Legal and General’s Optional Payment Navy Plan is effectively an interest-only lifetime mortgage scheme that provides an initial tax-free lump sum cash release for immediate use, with any remaining unused cash being retained in an uncapped cash reserve facility. This is ideal for those looking to borrow a larger lump sum, however wishing to control the balance by making monthly repayments, and access to future funds if required in the future.

As the Optional Payment Navy Plan has one of the higher LTV's in this product rangeit will therefore also offer one of the highest drawdown facilities within this OPLM range. Drawdown is available should the maximum release not be taken from outset. Thus any unused cash is retained in an uncapped cash reserve facility. This is ideal for those looking for access to a higher cash amount in the future, yet still being able to make monthly payments. The minimum withdrawal from the cash reserve facility is just £2,000 with no admin charges. Any further cash drawdowns would be at the interest rate applicable at the time of withdrawal.

A generous free unlimited valuation is offered along with a fixed equity release lifetime interest rate on the initial lump sum. Any further withdrawals would be at the interest rate applicable at the time of each withdrawal.

Legal & General include a Downsizing Protection feature on all its plans.

The L&G version of Downsizing Protection means that anyone moving home after 5 years from the plan start date, can repay the loan with no early repayment charge, as long as the property they are moving into does not meet L&G’s lending criteria.

As Legal & General are members of the Equity Release Council all their plans come with a no negative equity guarantee. Therefore, upon eventual sale of the property, any beneficiaries cannot be left with a debt, over & above the property value to the equity release provider.

For joint applicants there is an added protection feature for the last survivor of the plan. Should one homeowner die or move into care, the surviving partner has the option to be able to repay this lifetime mortgage within 3 years of this event, with NO penalty.

Options

This Legal and General Optional Payment Navy Lifetime Mortgage enables homeowners to spend their tax-free cash as they wish, and allows choice over whether to pay some, or all of the monthly interest back to L&G by direct debit.

These monthly repayments can be anywhere between a minimum of £25pm, upto 100% of the interest charged each monthly by the lender. This helps manage control the future balance of this lifetime mortgage UK scheme. By choosing to pay 100% of the interest charged will help maintain a level balance, whilst opting to pay off a reduced amount will slow down any roll-up of interest. The added benefit of this Flexible OPLM Indigo plan is that NO proof of income, or affordability checks are required.

Monthly payments can be stopped at any time, should personal circumstances dictate. In such situations, the plan will then revert to a roll-up scheme with interest compounding each year thereafter. However, even when monthly payments cease, the L&G Optional Partial Repayment feature becomes available, allowing upto 10% of the original amount borrowed to be repaid each year with no penalty. L&G allow four repayments to be made in any 12 month period with a minimum of £500 each time. These payments do not restrict any access to a drawdown facility that may exist.

A further option for inclusion is the Inheritance Protection feature, whereby a homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.

Tailoring the product further, you have the option of taking cashback of 2% and also deciding whether to pay an upfront application fee, or not. Both these additions will affect the corresponding interest rate.

The plan is ideally suited to residential interest-only mortgagors with no repayment strategy and require the highest maximum loan for settlement of their mortgage, or homeowners who wish to release equity, but concenred over the interest rolling-up over their lifetime.

*The 3-year no early repayment charge applies to joint life plans where the loan is repaid within 3 years of death or long-term care of a partner
**2% cashback option will increase the rate applicable by 0.2%
***Plan available with & without arrangement fee - rate quoted with application fee and no cashback

To obtain further information or to request a quotation on the Legal and General Optional Payment Navy Lifetime Mortgage plan, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.

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