Newlife started in 2003 offering retirement solutions to the UK. Unlike some lenders, Newlife does not speak with individual borrowers, but chosen lenders who are committed to making the best deal for their client as possible. Newlife has a range of products including the 65+ lifetime mortgage, home reversion plan, and others.
Newlife’s 65+ Mortgages are designed as retirement mortgages for homeowners age 65 or over. This is a new product that has some very unique features that set it apart from other products on the market.
Criteria of the New Life 65+ Mortgage
The youngest homeowner must be 65 years or older to qualify for this retirement mortgage. Retirees can take out a capital and repayment mortgage or interest only product. The capital and repayment mortgage is only available for a 25 year term.
The maximum lump sum amount is £350,000 based on the property value. The home needs to be in Wales or England to be eligible. The property value has to have a net equity remaining of £150,000 to be granted. To take the maximum amount the home value must be £500,000.
Unique Features of this New Life Retirement Mortgage
Unique features of the 65+ mortgage include the qualification criteria. The loan is awarded based on income and affordability. It is calculated in multiples of 4 times for the main income, plus 2.5 times any secondary income when taking out the interest only or lump sum capital product. It is also possible for a joint application to qualify at 3.75 times for joint income. Newlife also looks at credit history to ensure income is in addition to other previous debts on file.
The interest rate is variable for this loan.
Repayment on the capital and repayment mortgage is set at 25 years maximum regardless of the youngest homeowner’s age. If the product is taken out at 65 the full sum is due at 90. Repayment of the interest only mortgage requires monthly payments of interest, with the capital sum repaid within the 25 year maximum.
There is an early repayment charge on the equity release scheme. It is in place for one year with a 3% charge for the amount repaid. A payment of more than interest in that first year will be subject to the 3% charge.
Newlife Equity Release Incentives
Newlife Mortgages 65+ Mortgage has a non-exclusive incentive in which a free re-mortgage legal package is available and early repayment charges- 1 year.