Newlife - Flexible Lifetime Mortgage
  • Rate: 4.94%
    APR: 5.20%
    Offers: 10% Voluntary Repayment | Inheritance Protection

Newlife has created several new innovative products within the equity release market, all of which have provided a solid reputation in the industry. Newlife has held a strong command of the drawdown lifetime mortgages in years passed and is now getting an increase of attention in the market with their flexible lump sum lifetime mortgage.

In order to qualify for the flexible lump sum mortgage, borrowers must be aged 60 or older and must have a property that is valued at £70,000 or higher. This product is currently available in England, mainland Scotland, and Wales and can be purchased on single or joint life basis. If you are looking to borrow on a joint basis, you and your partner will need a combined total age of at least 120.

There are several unique features available with this product. There is a significant cashback option and absolutely no cap on the amount of money that can be saved in the cash reserve used for future withdrawals. There is also a free valuation offered to customers who have a property valuation of up to £500k.

The initial amount borrowed must be at least £10,000 but this product also offers the unique feature of being able to borrow more in the future as funds are needed. If future withdrawals are needed, the minimum allowed for each additional drawdown is £1,000. This is a great feature for those who do not want to borrow a large amount straight away but may need extra funds in the near future.

While the interest rate on the Newlife’s flexible lump sum mortgage is competitive, it is subject to change depending on the potential cashback that may be taken. At the onset, you may choose to take cashback of up to 0.75% of your first withdrawal. This cashback amount would not be able to exceed the maximum cashback allowed which is £2,000. However, choosing to receive cashback can mean that your interest rate is increased. For example, if you choose to take absolutely no cashback, your interest rate may be as low as 5.99%. However, if you do decide to receive cashback your interest can increase to 6.09%. Both of these interest rates are compounded monthly.

This a great product for any customer looking to tap into potential future withdrawals as the Newlife’s flexible lump sum mortgage is one product available that offers unlimited cash reserve. With the reserve, there is never any worry that you will not be able to secure future loans if and when extra cash is needed.