Optional Payment Lifetime Mortgage
Give your clients more certainty and fewer surprises with an Optional Payment Lifetime Mortgage.
What is an Optional Payment Lifetime Mortgage?
An Optional Payment Lifetime Mortgage is a type of equity release that allows your client to unlock some of the equity from their home without having to move. It's a loan secured against their home to give them a cash lump sum or smaller amounts, tax-free, that they can take as and when they need.
No affordability checks, a payment that clients can set up front, and an alternative to interest roll-ups – all with an Optional Payment Lifetime Mortgage.
We can’t stop life bringing dramas. But we can deliver dependable products that reduce the financial worry. Our monthly payments are realistic, starting from £25 to 100% of the interest. The interest rate is fixed for life and we'll never increase their monthly interest payment.
There is no risk of payment default, as they can choose to stop making monthly interest payments at any time and remain in their home. If they do stop, the interest is then added to the amount they owe each month. Your client can't restart interest payments once they’ve stopped. Only six missed payments in total are allowed in the product terms.
If they choose this product, it could help them reduce the overall cost of the lifetime mortgage.
A showstopping mortgage, without the drama, Optional Payment Lifetime Mortgage
Discover our video with Chris Nown, National Account Manager and Sally Richards, Telephone Account Manager.
Throughout the video they discuss how you can get in touch, the support available to you and most importantly, raise awareness on how taking out an Optional Payment Lifetime Mortgage can support you and your clients.
Case studies
We’ve developed a range of technical case studies to support you and your client conversations. Each designed to demonstrate the value of the OPLM and the certainty it can provide your client with over the course of the product.
Kevin and Sally case study
The married couple are on a tracker mortgage determined by the Bank of England rates.
With rates on the rise, they were keen to look at an affordable fixed interest rate for life to assure when retirement comes in 6years time they’ll still be in a financial position to afford the monthly repayments.
Peter case study
Peter, retired, aged 75 has an interest only mortgage that’s coming to an end. Without any savings or investments, he was struggling to find a way of paying back the capital on his home.
Peter spoke with his mortgage adviser who discussed the flexible monthly interest repayments available with an OPLM.
Megan case study
Megan, single and aged 59 needed to find a mortgage that allowed her to start repaying her loan at an affordable rate whilst working.
OPLM, enables a flexible repayment strategy to reduce her monthly interest payments when she retires in 6 years time.
Lifetime Mortgage calculator
Our Lifetime Mortgage calculator helps financial advisers to:
- Show your clients how much they may be able to release from their home.
- Demonstrate examples for both taking the maximum available as an initial advance or taking a smaller initial amount where the remainder can be drawn on in the future.
- Illustrate the effect of our inheritance protection option on the total loan amount available.
- Explore the impact of house price inflation.
- Highlight how the interest on their loan increases over time.
- Create a summary of your client's choices and possible results.
The calculator results are examples only. A lifetime mortgage is a loan secured on your client’s home. It will reduce the value of your client's estate but servicing the interest can slow or stop the growth of the loan over time and may affect their entitlement to means tested state benefits.
Our email PDF service for your illustration is unavailable.
Quoting and online services
Available Portals
Quotes for our Lifetime Mortgages products are available through the listed portals.
24/7 Apply/Request reoffers
To generate a KFI, make a new application, amend an existing one or request a reoffer.
Submitting non standard properties
In these situations we'll need some more information to assess your client's application.
Large loan request
If the total borrowing requirement is over £300,000 or the property value is over £1 million, you will need to make a large loan enquiry below.