Pure Retirement is new equity release provider based in Leeds. This company has the distinction of being the first new equity release business in the UK market of late. The Pure Retirement Drawdown Plan is their first marketable lifetime mortgage. They have since launched a second product called the Pure Lump Sum Plan. In order to offer transparency, Pure Retirement adheres to the Equity Release Council Code of Conduct and Financial Conduct Authority regulations.
Pure Retirement Drawdown Plan is a lifetime mortgage with a drawdown cash reserve facility. It is designed for consumers who want to access an initial lump sum and take additional money only whenever they require to supplement their retirement.
Criteria of the Pure Retirement Drawdown Lifetime Mortgage
Pure Retirement’s drawdown plan is available to applicants in mainland Scotland, Wales, and England. Property value must be a minimum of £70,000. The youngest age permitted for single or joint applicants is 70.
Loan to value percentages begin at 36% and increase based on age and property value. This is a higher LTV percentage than many other equity release providers offer. The initial equity release amount is also higher at a minimum of £25,000. The cash reserve facility requirements state a minimum withdrawal of £5,000 is required on any subsequent transactions without further charges.
The standard no negative equity clause is a part of this drawdown plan, where the roll-up interest and maximum lump sum/reserve cash cannot be more than the total property value.
Unique Features of this Drawdown Mortgage
With incentives attached to this plan homeowners are saved on the net total of fees. Pure Retirement has strongly geared the product to save on the initial set up costs of the plan, identifying this as a niche marketing area. Due to the cashback offers there is potential scope for surplus advice fees in some situations, which helps towards other set up costs associated with the equity release application process.
Providing a low cost to market product will indirectly help people looking to switch equity release plans of old. Assistance with the new set up costs & cashback would make the swap from one scheme to another more economical.
The drawdown facility enables minor inheritance protection. Homeowners can release a maximum amount to be kept in the reserve facility. Any unused portion at time of repayment would be given back in equity and thus available to beneficiaries.
Repayment occurs at death, home sale, or move to residential care facility. Early repayment is subject to a charge. Any leftover equity from the sale not paying the interest or drawdown sum is available for the homeowner or in case of death given to the surviving partner or heirs.
Pure Retirement Equity Release Incentives
Pure Retirement Drawdown Plan has non-exclusive incentives including free valuation, no application fee, £500 towards advice fee, and £600 towards legal fees. Incentives apply on equity releases of over £45,000.