Lifestyle Flexible Advantage: rewarding voluntary interest-servicing repayments

Lifestyle Flexible Advantage combines the flexibility of a lifetime mortgage with a unique feature that rewards voluntary interest-servicing repayments. By providing an uplift on eligible repayments, it can help clients take greater control of the cost of borrowing while retaining the flexibility to adjust repayments as their circumstances change. The uplift available to each client is shown in their Key Facts Illustration and Offer documents.

For every repayment a customer makes that is servicing the interest in the current policy year we’ll add an uplift. For example, if the uplift is 10% and your client makes a repayment of £100, we will add £10. This means £110 will be deducted from the accrued interest in the current policy year.

Customers can enjoy this added value without being locked into a fixed repayment schedule - or losing their uplift if they stop and start repayments.

To help you understand how this new product works for your clients, you can view our handy guide.

Retirement evolution

Lifestyle Flexible Advantage replaced the former Lifestyle Flexible Option and continues to offer:

• A tax-free lump sum or a lump sum with a cash reserve for future drawdowns
• No required repayments unless the customer chooses to make them
• Enhanced rates for customers with qualifying health or lifestyle conditions
• Downsizing protection, inheritance guarantees (optional), and a no-negative-equity promise
• Prevailing lending criteria

The flexibility continues

Our interest-servicing uplift is already a unique reward in the market, but there’s more.

Provided repayments remain within our voluntary partial repayment limits (minimum £50 per payment and maximum of 10% of total borrowing including initial loan, additional borrowing and any cash reserve releases, excluding any accrued interest), customers can enjoy this added value without being locked into a fixed repayment schedule - or losing their uplift if they stop and start repayments.

We know there is no one size fits all when it comes to retirement planning. Plans change and opportunities arise, so we have designed a product feature that compliments that flexibility without any penalty for your clients. This long-awaited enhancement brings convenience and control to customers managing their lifetime mortgage.

Explore our lifetime mortgage calculator

Help clients considering a lifetime mortgage to see the potential effects of compound interest and house price inflation over the course of the loan. Our calculator helps you get to grips with these complex issues and can take into account repayments they may want to make. You can find our calculator here.

We've also created a handy lifetime mortgage calculator user guide, to help you get the most out of it. 

Here to support you

To help you understand our new product, we have created a few helpful documents you can find in our document library

• Target Market Statement
• Value for money assessment 
• Terms and conditions (Edition 1)
• Case studies
• Voluntary partial repayment customer guide

You can also refer to our frequently asked questions.

Alternatively, you can speak to your dedicated Business Development Manager. You can find their details here.

Our lifetime mortgage is a long-term loan secured on your clients home. Inheritance will be reduced and tax position and welfare benefits may be affected.