Optimus Mortgages are committed to helping you fully understand the broad range of options available, so that you can work with us to make an informed decision about the product that is most suited to your individual requirements. Be reassured that our style is to guarantee reliable retirement solutions appropriate to any individual that contacts us.
Later life borrowing can seem like a challenging and complicated process, which is why you need regular access to expert guidance and support from people you know you can trust.
Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. To understand the features and risks ask for a personalised illustration.
Traditional mortgages for over-50s
According to UK Finance, new lending where the term extends into retirement (65) accounted for around 60% of all lending in the UK in August 2023. Compared to when the later life lending sector was first created, many traditional mortgages now have age caps that extend well into a borrower’s retirement. For clients looking to remortgage, these can offer valuable solutions but are more limited by income and ability to make repayments than specialist later-life products.
Equity Release
Equity release is an umbrella term for Lifetime Mortgages and the lesser-used Home Reversion Plans. When a customer takes out a lifetime mortgage, they retain full ownership of their home, and any interest on the loan can either be paid monthly, on an ad-hoc basis, or rolled up into the loan amount. The loan and any outstanding interest are repaid when the borrower dies or moves to long-term care and plans that adhere to Equity Release Council Standards cannot exceed the value of the property providing the terms and conditions have been adhered to.
Retirement interest-only Mortgages (RIOs)
Only available on a main residence, a RIO is similar to a standard interest-only mortgage, however, the loan is usually only paid off when the borrower dies, moves into long-term care, or sells the property. Affordability is based on the ability to meet monthly interest payments, and the property can be at risk if repayments are not met.
Payment Term Lifetime Mortgages (PTLMs)
A lifetime mortgage under which the customer commits to a regular payment at the outset which reflects all or part of the interest to achieve a higher LTV at the outset than would otherwise be available. Whilst the product will provide security of tenure from the outset this is dependent on maintenance of the agreed payment.
Optional Payment Lifetime Mortgage (OPLMs)
A lifetime mortgage under which the customer commits to a regular payment at the outset which reflects all or part of the interest. Depending on the specific terms of the product the payment may or may not generate preferential terms and also may or may not have commercial implications in the event the payment ceases, but in any event security of tenure is not dependent on maintenance of the payment.
Hybrid Product
A Hybrid product is a product that includes, after an agreed period, conversion into an interest roll-up, but does not satisfy the regulatory definition to be classified as a Lifetime Mortgage. This may for example be a product designed very similarly to a PTLM, but where the payment during the mandatory payment term is greater than full interest only and therefore includes a period where both capital and interest are being repaid before moving into roll-up.
Frequently asked questions about Equity Release
Is Equity Release regulated? Is Equity Release safe?
What can Equity Release be used for?
How much could I release with Equity Release?
Will I still own my home with Equity Release?
Can I get Equity Release if I already have a mortgage?
Do I have to make monthly payments with Equity Release?
Could my family inherit my Equity Release debt?
How much does Equity Release cost? Is Equity Release expensive?
What should I expect from my Equity Release appointment?
Is Equity Release right for me?
Our Fees
At Optimus Mortgages we believe in being competitive and transparent on fees.
For all cases, our initial consultation is free, and you will not be asked to pay a fee until we are ready to submit the application on your behalf.
A broker fee of £1,490.00 is payable in total. £495.00 is payable when you apply for a Later-Life Lending product and the remaining fee amount of £995.00 is payable on completion of the Later-Life Lending application. We will also be paid a commission from the lender / company that places a charge against / buys your home.
Our broker fee is payable once only. All future advice and any further later-life lending applications are fee-free.
There are additional services and processes that you will need to pay for, such as solicitor’s fees, the lender’s application fee and surveyor’s valuation fee and these are additional expenses of which you need to be aware.
Optimus Mortgages work for you, not the lender, or anyone else. When you pay for Later Life Lending or mortgage advice rather than using a ‘free’ service, or going direct, you can trust that everything we do is in your best interests. Your personal mortgage adviser learns everything they need to know about your circumstances, so they can find you the best rates for your situation. We could potentially save you up to tens of thousands throughout the term of your Later Life Lending plan or mortgage.
Equity Release may not be suitable for everyone.
Releasing capital from your property, will reduce the amount of inheritance that can be left and may impact the receipt of any means-tested benefits.