Newlife offers a range of products like Gold Lump Sum and 65+ mortgages. Their range of lifetime mortgages and equity release products are designed with the individual homeowner in mind. However, Newlife has authorised and approved lenders to sell their products. This 2003 start-up has already gained awards for equity release products.
Newlife had recently two lump sum products on the market: Gold Lump Sum and the now withdrawn Landlord buy-to-let equity release scheme, but each works in a different way. The Gold Lump Sum Max provides the largest tax-free cash sum to homeowners under Newlife criteria. The New Life mortgage is designed for homeowners in good health, requiring the maximum release of property value attainable.
Criteria of the New Life Gold Lump Sum Plan
Newlife offers products for single or joint house ownership. The Gold Lump Sum plan is available for homeowners 70 and over. The youngest homeowner has to be at least 70 to be considered for this loan. A minimum property value of £70,000 is required with a minimum loan amount of £15,000 awarded.
Applications will access the largest lump sum based on their property value, age, and property type. No repayment is needed on a monthly basis. Repayment is due at death or move to an assisted living facility.
The interest rate on this loan is fixed for the term of the mortgage. The rate is determined by the applicant’s qualifications and any interest rolls up into the loan. Homeowners will know the interest rate plus principle balance each year. This total is what is owed if repayment occurs.
Unique Features of this New Life Mortgage
A unique feature with this lump sum mortgage is the maximum equity release amount. Not all of Newlife’s lifetime mortgages come with a maximum sum. For the Gold Lump Sum Max homeowners can take out up to £200,000. This applies for homes with more than the max sum in property value.
Newlife no longer offers their 5 year early repayment charge. Instead, a homeowner who decides to repay the loan early will need to monitor gilt rates. Early repayment is tied to 15 year rates and their movements. When the gilt rate increases there is no early repayment penalty; however, if it decreases there is a charge.
Newlife Equity Release Incentives
Newlife incentives include a free valuation up to £500,000. This is not an exclusive incentive.