This Legal and General Optional Payment Pink 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 the Flexible Pink OPLM 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 Pink 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 Pink OPLM 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 funds for settlement of the loan, or homeowners who wish to release equity, but concerned 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 Pink Lifetime Mortgage plan, please contact the Equity Release Supermarket team on Freephone 0800 088 5898 today.