Right now, there are around 1.67m people across the UK with an interest-only mortgage[1]. And 1 in 5 aren't confident they'll be able to pay it off when the time comes[2]. The good news is that our Optional Payment Lifetime Mortgage (OPLM) could be a solution.

OPLM works by allowing clients to unlock the value of their homes and pay off their existing interest-only mortgage. Any interest accrued on our OPLM can be paid off monthly by direct debit. So clients can feel comfortable knowing what they’ll pay and when. In fact, they can choose to pay off some or all of the monthly interest, or even stop paying if they want.

OPLM is a solution for clients who might otherwise struggle to pay off their interest-only mortgage. They must repay their existing mortgage in full. It ensures they can remain in the home they love. All without any affordability assessment.

What’s the opportunity?

In recent research, 13% of interest-only mortgage holders stated they weren't aware they needed a separate payment plan to pay off the capital at the end of term[3]. And when we spoke to consumers who were approaching the end of the term of their interest-only mortgage, many people stated they would seek advice from an adviser to understand fully what their options are[4].

OPLM could be the solution, and an opportunity for you to help diversify your business.

Why an OPLM?

Our Optional Payment Lifetime Mortgage is a type of equity release. It’s a loan secured against the client’s home.

It allows your clients who are 55 and over to:

  • Pay off their existing interest-only mortgage
  • Remove any exposure to interest rate inflation
  • Choose to pay some or all of the monthly interest on our OPLM
  • Stop payments in the future if they want
  • Have this product without affordability assessments
  • Pay by direct debit every month
  • Stay in the home they love

For more information please take a look at our dedicated Optional Payment Lifetime Mortgage page.

Optional Payment Lifetime Mortgage 

[1] FCA urges action on interest-only mortgages, FCA, January 2018

[2] GFK. Interest-only mortgages. Consumer research – consumer strategies for repaying the loan at the end of the mortgage term

[3] GFK. Interest-only mortgages. Consumer research – consumer strategies for repaying the loan at the end of the mortgage term

[4] Interest Only research conducted with illuminas. June 2018.