Just Retirement is a leading provider in equity release and is a trusted company when it comes to retirement options and solutions. The Roll-Up Lifetime Mortgage from Just Retirement offers some rather unique ways for consumers to tap into the equity accumulated in their home.
With this lifetime mortgage, you can release equity from your home only when you need it and as you need it. This means that you are only ever accruing interest on the amount that has actually already been released. The interest on the loan accumulates each year on a compound basis which essentially means that the longer the equity release scheme is used, the larger the final balance charged.
In order to qualify for the Just Retirement Roll-Up Lifetime Mortgage, you must be aged 60 or over and your property value must be a minimum of £70,000. With this popular lifetime mortgage, you have the ability to take your equity release as a one-time lump sum payment or you may choose to borrower a much smaller amount at first. Should you choose to borrow the smaller amount, you will have the rest of the cash available in a reserve should you need it in the future. This reserve allows you to see what cash you still have available to borrow.
The overall reserve amount cannot exceed 3 times the amount that is initially borrowed. So, if you borrow only £10,000, your reserve will not be allowed to exceed £30,000. Of course, the reserve also cannot exceed the original amount for which you qualified based on your individual eligibility criteria such as property value and age. However, Just Retirement will allow further borrowings once the initial reserve facility has been utilized & drawn down.
The interest rate on the equity borrowed is fixed at the time you borrow. The interest is charged on the first loan you take out and then on any further withdrawals you may make from your reserve. Every year following your initial loan, the interest accrued will be rolled up and added to the loan. A statement is produced & posted to you from just Retirement each year clarifying the current balance.
In England, the minimum for borrowing with this roll-up mortgage is £10,000 and you cannot borrow more than £600,000. In Scotland, Northern Ireland, and Wales the minimum is the same but the maximum loan available is £250,000.
This lifetime mortgage may charge an early repayment fee should you decide to repay your mortgage early. However, once you have the roll-up lifetime mortgage with Just Retirement, you can move house if you would like and transfer the lifetime mortgage so long as you still meet the requirements of the lender.