Just Retirement began providing equity release schemes to homeowners in 2004 and has proven to be a popular choice for many consumers and has grown to become one of the larger providers of enhanced annuities. The Roll-Up Lifetime mortgage provided by this Just Retirement is one of the more flexible options available to homeowners, as it offers several different options.
Perhaps the most flexible option associated with this product is the idea that homeowners can receive their equity release on an ongoing basis, as opposed to a one-time release from the property. In other words, homeowners are able to receive future releases should they need them, on an as-needed basis and is the most popular form of equity release called a drawdown lifetime mortgage. Even if the homeowner takes advantage of this option, they only pay interest on the amount of equity that is actually released & nothing on any money left in reserve with the lender.
With this lifetime mortageg product, Just Retirement has a minimum lending amount of £10,000 and a maximum of £600,000. The original loan amount must be at least £10,000. The amount available for each individual loan will depend on a couple of factors including the property value and the age of the homeowner. In order to qualify for this product, the homeowner must be at least 60 years old and the home must have a minimum valuation of £70,000. The property must also be located within the UK.
With this product, the release can be withdrawn in a couple of different ways. First, the homeowner can receive a one-time larger payment. The other option is available is to have equity released through several smaller payments. These smaller withdrawals can be taken on an as-needed basis. There are some restrictions as to how much can be borrowed but these restrictions depend on the individual homeowner and subject to a minimum of £2,000 for the cash reserve.
The interest rate with the Just Retirement Roll-Up Lifetime Mortgage is fixed once the original withdrawal is made. The original amount borrowed will be charged interest, along with all future withdrawals made. However, the interest only accrues on payments that are actually paid out. The interest is added to the loan each year and is charged on the amount of the loan combined with any interest that has already accrued. In other words, the interest is “rolled up” on a consistent basis. The loan will be repaid once the home is sold. The amount repaid will be much greater than the original amount borrowed given that interest has consistently accrued and been rolled up since the first withdrawal was made.