Lifetime Mortgages & High Street Banks
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Lifetime Mortgages & High Street Banks
Equity release is bigger than it’s ever been in the UK. What this has meant for the industry is that larger banks are cottoning on to the idea of allowing clients over the age of 55 to unlock the cash tied into their estates.
Behold, the High street banks!
One of the big guys who’ve stepped in as an equity release lender is the Nationwide Building Society.
They offer a range of mortgages for older folks, including equity release. Their products are available for homeowners aged 55 to 84.
High Street Banks & Their Lifetime Mortgage Offerings
Nationwide Building Society
In 2019, the Nationwide Building Society announced a line of lifetime mortgages. It began by providing these to its current members, then expanded to include all members of the public.
A specialist Later Life Lending Team at Nationwide Building Society handles retirement interest-only mortgages and equity release.
Their offerings have the following features:
- No valuation fees, product fees or advice fees
- Legal advice is mandatory
- £1,000 cashback on initial completion
- Varying maximum borrowing amount depending on the borrower’s age and property value
- Up to 10% of the loan amount can be repaid annually without an early repayment charge
- Fixed interest rate for the life of the mortgage
- Downsizing protection
In 2016, Santander partnered with Legal & General Home Finance to provide Santander customers lifetime mortgages.
While Legal & General is the lender, Santander customers are advised by a different company called Key Retirement.
Santander opted to offer lifetime mortgages to customers with interest-only mortgages who had a shortfall at the end of their term or who needed to release equity to help support their retirement.
For lifetime mortgages, Lloyds Bank and TSB both refer customers to Scottish Widows (a Lloyds Banking Group subsidiary).
Scottish Widows is a life insurance and pensions company located in Edinburgh, Scotland, and is a subsidiary of Lloyds Banking Group.
Its product range includes life assurance and pensions.
Since 1815, the organization has provided financial services to the UK market. Independent financial advisers, direct to clients, and Lloyds Banking Group bank branches all market the company’s products.
Canada Life Financial Corporation is a Canadian company that offers life, health, and disability insurance to both businesses and individuals.
It was purchased by The Great-West Life Assurance Company in 2003 after rejecting a hostile buyout offer from rival Manulife.
They provide you with a selection of varying plans, to suit your need:
- Capital Select – borrowers can pay back up to 10% each year, and repayments can be made at any time. There are also options for 3% return and access to a cash reserve that can be used later.
- Interest Select – borrowers can opt to pay more than 50% of their interest each month and allows for a cash reserve that can be accessed at a later date.
- Lifestyle Options – with no monthly repayments required, an inheritance guarantee and fixed early repayment charges, the Lifestyle Options plan is designed to provide you a comfortable retirement.
- Second Home Options – by offering free valuations, an option to borrow more money at a later date and the option to make voluntary payments.
- Prestige – allows you to borrow up to £2m with no monthly payments and optional cash reserve.
On its Capital and Interest Select lifetime mortgages, Canada Life is also waiving completion fees until March 31, 2021.
To negotiate lifetime mortgages from Canada Life, borrowers must identify an equity release adviser.
Legal and General Home Finance
Legal & General Group PLC, or simply Legal & General, is a London-based multinational financial services firm.
Its products and services include investment management, lifetime mortgages, pensions, annuities, and life insurance.
Established in 1836, they are experts in protecting people’s financial futures as one of Europe’s leading insurance and asset management businesses, with over £1 trillion in assets.
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