Just Equity Release options
There are three types of lifetime mortgage plans that we will focus on in the Just Equity Release Review; the Just Drawdown Lifetime Mortgage; their Lump Sum Lite Lifetime Mortgage and finally the Just Lump Sum Plus Lifetime Mortgage.
Subject to the terms and conditions, all of the lifetime mortgage options will allow you to remain in your home until you (and your partner if choosing a joint lifetime mortgage plan) die or move into long-term care.
In addition with all of the Just equity release schemes you won’t have to make repayments as the money is repaid from the sale of the house when the loan ends and the money released is tax free (it may still affect your tax situation and any benefit you may receive).
This type of Just Lifetime Mortgage is available to customers aged 60 or over and allows you to release money as and when it is required. Depending on your age and the value of your property, you can borrow between £10,000 to £600,000 if you live in England or up to £250,000 if you live in Wales, Scotland or Northern Ireland.
You can choose to take the money in one lump sum or borrow a smaller initial amount, releasing further amounts as required. This means that you will only pay interest on the actual amount you borrow which will be based on the rates at the time of each withdrawal.
The cash withdrawal facility available to you will be limited to the lower amount of either three times the initial loan or the maximum amount you can borrow based on your age and the value of your property.
Lump Sum Lite
The Just Lite Lifetime Mortgage is designed for those who want to take a single lump sum payment without the need of withdrawing additional sums in the future. The amount you can borrow with this lifetime mortgage is higher than with the Drawdown Lifetime option however the interest rates tend to be higher too.
Further lending options may be available to you after six months of receiving your cash sum however this will depend on your elgibility.
You need to be 60 or older to apply and your property should be worth at least £70,000 and located in England, Scotland or Wales.
The amount you can borrow will as always depend on your age and the value of the property but there is a minimum amount of £10,000 and a maximum of £600,000 in England and £250,000 in Scotland and Wales.
Lump Sum Plus
This type of lifetime mortgage gives customers the option to maximise the lending potential against their home. The standard loan to value is usually higher than with the Drawdown Lifetime mortgage but it will have a higher interest rate. In addition, the Just underwriting team can also take into account your health and lifestyle giving you the potential to borrow a greater amount.
It is worth noting that a higher interest rate may apply to mortgages with an enhanced loan to value term.
Again you must be 60 or over to apply and have property worth at least £70,000 in England, Scotland or Wales. The minimum and maximum borrowing rates are the same as with the Lump Sum Lite Lifetime Mortgage plan.