Notices
  • The Capital 90 (1) 1.06% AER - is now on general sale and can be applied for exclusively online. £20,000 minimum deposit. You can add funds to the account until 3pm, 26 November 2021, after this no additions will be allowed. Find out more
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Questions about our Retirement Lifestyle Booster mortgage? Find answers here

The mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Here are the answers to the most common questions about our Retirement Lifestyle Booster mortgage.
As with a traditional mortgage, you continue to own the property for the entire mortgage term.
You can. If you wish to move house during the mortgage term you can transfer the mortgage to another property provided it meets our lending criteria. You do this by selling your existing property, repaying the existing mortgage and taking out a new one on the same day on the property being purchased. The terms of the Retirement Lifestyle Booster are transferred as part of this.

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.
You can borrow up to 25% of the value of your 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 currently mortgage free, the minimum amount you can borrow is £60,000 which gives a monthly payment to you of £500 per month for 10 years.

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.
The Retirement Lifestyle Booster is available on properties worth £180,000 and over.
If you are currently mortgage free and you have not requested an optional lump sum, your mortgage must complete on the 10th working day of the month, or the following working day if the 10th is a non-working day.

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.
No. Once the loan has started the monthly payments to you will remain at the same level each month for up to 10 years.

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.
No. The Retirement Lifestyle Booster is intended to be repaid after 10 years. For this to remain a realistic prospect additional borrowing is not available.

The optional lump sum is available only at the start of the Retirement Lifestyle Booster mortgage and cannot be taken later on.
The Retirement Lifestyle Booster continues in the name of the surviving borrower only.

It is therefore important that you are sure you can afford the monthly payments from the start.
The monthly payments to the borrower will cease. As with a standard mortgage, the estate of the deceased will be responsible for the payments to us and for securing and insuring the property until it is sold.
At the end of 10 years the amount of mortgage outstanding will be the same as the amount you have borrowed (i.e. the initial loan plus the amounts paid to you each month). Your monthly payments to us will have covered the interest due. This is subject to all payments due being made on time, as you would expect.

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.
The youngest borrower must be aged 60 or over at the time of the application, and the oldest borrower must be aged 79 or under at the time of application.
Yes you can. Your mortgage with your existing lender must be repaid at the start of the Retirement Lifestyle Booster using part of the loan we agree. The additional amount you borrow from us must be at least £30,000.
Yes. These will be shown in the Illustration provided by your adviser. You can also find a list of all the fees that may apply during the mortgage here.
Yes. If you decide to repay during the first three years you will incur an Early Repayment Charge.
At the end of the 10 year term you will need to repay the outstanding loan in full. This will be the amount you borrowed (i.e. the initial loan plus the amounts paid to you each month).

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.
Our monthly payments will be sent to you on the 10th calendar day of each month, or the following working day if the 10th is a non working day.

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.

The interest rate charged is linked to the variable Family Building Society Managed Mortgage Rate. Current details are given in the Illustration provided by your adviser and are also available here.
The money can be used for a variety of lifestyle reasons, although we do have some restrictions on what you can use the borrowing for. It can’t, for example, be used to cover everyday living costs. Please contact us for more information.
You can either apply through an independent mortgage broker or directly through one of the Family Building Society’s Mortgage Advisers.

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.