This Standard Life Home Finance Horizon 300 lifetime mortgage scheme allows any homeowner over 55 to spend their tax-free equity as they wish, with no requirements to making any repayments.
However, as part of the Standard Life features, they provide a Voluntary Partial Repayment Option, which allows homeowners to make upto 10% repayments of the original amount borrowed each year with NO penalty. The minimum amount that can be repaid is £50, and an unlimited number of payments can be made every year.
Making contributions to an lifetime mortgage will help control the future balance of the lifetime mortgage, either to reduce the roll-up effect of the interest, pay off the interest only, or even reduce the future balance by utilising the full 10% per annum allowance.
Payments can be paid by monthly standing order, hence the plan acts as a traditional interest only mortgage should the monthly payment made equal the interest being charged. By repaying the interest every month will maintain a level balance for as long as payments are maintained.
As part of the Horizon 300 options, Standard Life can offer several fee structures which the homeowner can choose from - with or without an application fee. These are subject to regular changes, hence please call Freephone 0800 802 1051 for upto date information on availability.
A further option included is the Guaranteed Inheritance Feature which provides an option for the homeowner to secure a fixed percentage of the final sale value of the property to their beneficiaries. This is important for those who wish to guarantee a percentage of the house value from their inheritance.
*The Day 1 no early repayment charge applies to joint life plans where the loan is repaid anytime from inception of the plan following death, or long term care of a partner
**Downsizing protection applies immediately the plan has started and the new property does not meet Standard Life's acceptable lending criteria. The loan in such cases can be repaid with NO penalty
***The Standard Life Horizon 300 plan comes with the option of choosing whether to pay the application fee, or not. By selecting the 'fee free' deal will increase the interest rate accordingly
****Rate quoted applies to the Horizon 300 equity release loan with a £995 application fee
To obtain further information or to request a quotation on the Standard Life Home Finance Horizon 300 Interest Only Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.