Downsizing Protection FAQs
On 9th October 2019, we’re introducing Downsizing Protection for all new and existing customers.
Below are a few FAQs to answer any queries you may have:
What is happening?
We’re introducing Downsizing Protection across our Lifetime Mortgage range to all new and existing customers.
How will it work?
Downsizing Protection allows customers to repay their lifetime mortgage without having to pay an Early Repayment Charge if they move home and their new property does not meet our lending criteria.
Is there a criteria?
Customers must have had their lifetime mortgage for five years or more in order to qualify for Downsizing Protection.
If your client decides that they want to move home but they don’t want to transfer their lifetime mortgage or, if they choose to repay their lifetime mortgage for any other reason, they may still have to pay an Early Repayment Charge.
Will Downsizing Protection apply to my existing applications?
Yes, from Wednesday 9th October 2019 Downsizing Protection will be available to all new and existing customers.
How will you notify customers of this new feature?
We’ve created a new Downsizing Protection leaflet. We’ll issue this leaflet to all new customers with their welcome letter and to all existing customers with their annual statement.
You can view a copy below.
PDF file: Downsizing Protection leaflet Q0059449 PDF size: 48KB