Optional Payment Lifetime Mortgage

COVID-19 update for OPLM:

We’re currently letting OPLM customers miss up to 3 monthly interest payments, without these counting towards the 6 missed payments, allowed in the product terms. We hope this will help those who find themselves in financial difficulty due to COVID-19. If they wish, all OPLM customers continue to have the ability to stop making monthly interest payments at any time and convert to interest roll-up.

We’ve introduced a dual valuation approach

In light of the recent changes to lockdown measures in England, Wales and Scotland, we’re introducing a dual valuation approach. We’ll first prioritise physical valuations for pipeline cases where a desktop valuation was not possible. For new applications you  are now able to select the client’s preference for a physical or desktop on Apply Online. Read our desktop valuations article below for more information about this process and how this will affect our valuations.

Our Optional Payment Lifetime Mortgage is different to our Flexible Lifetime Mortgage because it allows your client to pay some, or all, of the monthly interest by Direct Debit.

There’s no affordability assessment and your client can stop making monthly interest payments at any time. Paying the interest will reduce the overall cost of the loan.

Does your client have a maturing interest-only mortgage?

It’s estimated that there are over one million homeowners in the UK who have an interest-only mortgage, and have no way of repaying what they have borrowed at the end of their term.

Our Optional Payment Lifetime Mortgage could help them repay their outstanding mortgage debt and continue with their routine of paying their interest monthly.

Clients coming to the end of their interest-only mortgage?

We've created some useful marketing templates for you to download.

View - Marketing templates 

What is it?

A 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.

Our Optional Payment Lifetime Mortgage allows your client to pay some, or all of the monthly interest by Direct Debit. They can choose a payment amount between £25 and the full monthly interest charged each month.

The interest rate is fixed for life and we'll never increase their monthly interest payment.

They can choose a payment term from one year to the full duration of their lifetime mortgage.

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.

If they choose this product, it could help them reduce the overall cost of the lifetime mortgage.

Lifetime mortgage FAQs

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