Freephone 0800 802 1051
Freephone 0800 802 1051

Legal & General Optional Payment Teal Rates & Details

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Optional Payment Teal

  • Type Fixed
  • Rate 3.31%
  • APR 3.40%
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

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's range of equity release schemes principally offer flexible drawdown lifetime mortgage plans with varying degrees of loan-to-values to suit the overall size of cash facility required. All plans come with the balance control feature - the 10% partial repayment function. L&G being one of the most recognised equity release lenders are always looking to develop the later life market and have more plans in store, which all bodes well for an already expanding post retirement lending market.

Eligibility

The Legal & General Flexible Optional Payment Teal 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.

The Optional Payment Teal Plan sits in the mid-range of the interest rate scale within Legal & General's interest-only mortgage range, but also comes with a mid-range loan-to-value ratio for lump sum calculations. The OPLM Teal plan offers the discipline of fixed interest monthly repayments to help control the balance. It provides a higher maximum release than the Optional Payment Turquoise, but correspondingly higher interest rate and correspondingly higher comparable monthly payments.

The minimum property valuation applicable to this Optional Payment Teal Lifetime Mortgage is £100,000 with a maximum property valuation outside London being £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 & maisonettes - Legal and General will only base their calculations on 85% of the current market valuation. Additionally, should the property be leasehold, to be acceptable, the age of the youngest applicant at completion, plus remaining lease term, must be at least 185 years.

The L&G Optional Payment Teal 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 Teal 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 Turquoise Key Facts Illustration.

Features

Legal and General’s Optional Payment Teal 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 control the balance by making monthly repayments, whilst at the same time obtaining a competitive interest-only equity release rate, and access to future funds if required.

The Optional Payment Teal Plan also comes with a drawdown facility. 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 cash 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, which means if your plan has run for a minimum of 5 years and you are moving to another property that doesn't meet L&G's lending criteria, then the loan can be repaid with no penalty.

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 Teal 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 Teal 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 Teal 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 OPLM Teal 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 Teal Lifetime Mortgage plan, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.

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