Mortgages - Lifetime Interest Roll Up Scheme

With this type of mortgage the loan is secured on your home. The Lifetime mortgage can be taken as a lump sum or drawn in stages. Interest is not paid on the loan until the property is sold.

However, there is an option to pay part, or all, of the interest at any time. Interest is charged on the original loan as well as on the interest that has already been added in previous years and is added to the loan on the 31st December of each year. Because of this, the amount owing can grow quickly, especially if a lump sum is taken at the start of the loan.

Eventually, this might mean that the amount owed is greater than the value of the property. This is known as "negative equity" and the Society does not offer a no negative equity guarantee.

You may wish to discuss the matter with your close relatives as any equity release scheme will affect the amount of money you will be able to leave to your beneficiaries when you die. Your tax and any welfare benefits may also be affected. You are also recommended to take independent financial and legal advice. The financial advisor should be qualified to advise on lifetime mortgages and the solicitor should be experienced in such matters.

The Financial Services Authority (FSA) provide helpful information, including a fact sheet about raising money from your home. This can be obtained from their consumer website at http://www.moneymadeclear.fsa.gov.uk or by telephoning their consumer help line on 0845 456 1555.

As our interest rates are variable and we do not offer a "no negative equity guarantee", we have not applied to become a member of SHIP (Safe Home Income Plans).

The Key features of this mortgage are detailed opposite. In addition to this, copies of our Tailored Mortgages and Mortgage Information leaflets are available in a PDF download.

For further details and to discuss your individual requirements please contact our Mortgage Department on 01582 765 411 or email mortgages@harpendenbs.co.uk.

Tailored Mortgages Leaflet PDF2.2MB

Mortgage Information Leaflet PDF2.4 MB

*The actual rate payable will depend upon your individual circumstances, please ask for a personalised illustration.

This mortgage will be regulated by the Financial Services Authority (FSA). Follow this link for information regarding Mortgage Regulation.

Building insurance cover is required and can be arranged by the Society.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The Society is authorised and regulated by the Financial Services Authority