Newlife Flexible Lump Sum Lifetime Mortgage is just one example of products provided by this financial retirement lender. Newlife started in 2003, which is fairly late in the equity release industry. Despite being fairly new, the company has devised a way to offer products for just about any client in retirement wishing to access home equity. By speaking with approved and authorised lenders customers can borrow funds for their retirement.
Criteria of the Newlife Flexible Lifetime Mortgage Plan
The Newlife Flexible Lump Sum plan is for people over 60 years of age. It is designed to release equity to retirees with an account facility. Homeowners can withdraw funds as they need them, rather than all at once. This is the drawdown principle.
It is available for single or joint home ownership as long as it is the main residence, where the home is located in England, Wales or Scotland.
There is a £70,000 minimum property value required. A single applicant must be at least 60 years of age, whereas joint applicants need a joint age of 120 to submit an application.
The minimum initial drawdown amount is £10,000. After the initial withdrawal homeowners can make withdrawals as needed as long as the amount is at least £1,000.
Unique Features of this Drawdown Mortgage
Newlife offers a cash back offer, which is 0.75% of the initial advance. It is capped at £2,000. However, if cashback is taken it will increase the respective interest rate. If no cashback is taken the rate will be lower than the monthly compounded total when cashback is taken.
The plan is also drawn up with an aim to provide a higher loan to value compared with other plans on the market. There is no cap on the reserve facility size. Newlife Flexible Lump Sum is one of the only products on the market not to have a maximum cap for the cash reserved.
Newlife’s product has the standard repayment requirements. Repayment of the principle balance plus accrued interest is due upon death or when the last surviving homeowner moves to a long term care facility. Interest is charged on money withdrawn from the reserve facility rather than the full amount in the facility. This keeps the principle balance lower and the possibility for inheritance remains.
Newlife Equity Release Incentives
A non-exclusive incentive, Newlife offers a limited free valuation, no application fee and an optional cashback maximum of £2,000. The free valuation is up to a home value of £500,000.