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Questions about our Retirement Lifestyle Booster mortgage? Find answers here
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- Retirement Lifestyle Booster FAQs
The mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Remember that the maximum agreed advance (including money already drawn) must be no more than 25% of the value of the new property so some adjustment of your loan may be required if you are moving to a less expensive property.
This will be used to:
• Pay you a monthly amount for up to 10 years
• Optionally, pay you a one-off lump sum at the beginning (maximum lump sum being 24 times your chosen monthly payment, minimum £500)
• Repay your existing mortgage, if any.
For example, if your property is worth £480,000 the maximum Retirement Lifestyle Booster mortgage is £120,000. If you have an existing mortgage of £20,000 to repay, then from the remaining £100,000 you could receive £833 per month with no initial lump sum.
Alternatively, if you want to receive a lump sum at the start then you will need to choose to receive a smaller monthly amount.
Using this example some of the possible combinations are shown in the table below:
MONTHLY PAYMENT |
INITIAL LUMP SUM |
|
£833 |
£0 |
|
£800 |
£4,000 |
|
£750 |
£10,000 |
|
£700 |
£16,000 |
|
£650 |
£15,600 |
|
£600 |
£14,400 |
|
£550 |
£13,200 |
|
£500 |
£12,000 |
Try our RLB calculator
If you are also using the Retirement Lifestyle Booster to repay your existing mortgage, the minimum amount you can borrow is £45,000. The minimum amount you can use for monthly advances is £30,000. This gives a monthly payment to you of £250 per month for 10 years.
If you are using the Retirement Lifestyle Booster to repay your existing mortgage, and/or you have requested an optional lump sum, your mortgage can complete on any day of the month. This is subject to our normal checks being satisfied e.g. references, proof of identity and affordability.
If you no longer wish to receive these, you can ask us to cancel this aspect of your mortgage. Once cancelled, the monthly payments to you cannot be restarted at a later date. Your payment to us will be recalculated on a standard interest-only basis, using the actual balance outstanding.
The optional lump sum is available only at the start of the Retirement Lifestyle Booster mortgage and cannot be taken later on.
It is therefore important that you are sure you can afford the monthly payments from the start.
You will need to repay the full loan at the end of the term. This will require you to sell your home at that time unless you have other sources of capital for the repayment.
You can do this by selling your property and moving to a less expensive one or using another source of capital to repay the outstanding amount.
Each month you pay us the ‘average’ interest due over the term of 10 years.
The first payment by you is due one month after the Retirement Lifestyle Booster starts and then on the 5th of every month after that. Your payments are made by direct debit. By ‘average interest due’ we mean the amount required to leave the balance outstanding at the end of the 10 year term equal to the amount you have borrowed from us less any money you repay early.
Product information
Key features of our Retirement Lifestyle Booster mortgage and how to apply.
How it works
Find out more about how the Retirement Lifestyle Booster mortgage could work for you.