National Counties Equity Release Mortgage Scheme

To find out more about National Counties Equity Release Lifetime mortgages and the other leading equity release schemes on the market, Click on the image below to complete the Equity Release Quote request form and an equity release specialist will be in touch to offer you independent help, advice and quotes.

National Counties Building Society offer a Flexible drawdown mortgage with a lifetime fixed rate and no requirement for regular payments. Loans are available to release equity in your home with the maximum advance being according to age.

The Flexible Drawdown Lifetime Mortgage allows you to use your home as security for a payment free loan that you can use in any way you wish. It gives you an agreed loan facility to suit your needs, against which you can draw advances as the money is required by you.

The initial advance at the start of the mortgage must be at least 50% of the agreed loan facility (subject to a minimum of £10,000). The remaining borrowing reserve can then be released to you as and when required, either as ad-hoc lump sums (minimum £1,000) or as regular monthly amounts (minimum £200 p.m.), or both. This allows you to tailor your borrowing to your circumstances as they change, drawing only the money you need when you need it and keeping your financial arrangements simple, minimising the overall debt that you build up against your property. In addition, you’ll have the security of knowing in advance that there are funds you can call on should you need them and how much these will cost you.

After 10 years have elapsed from the date of the initial advance any remaining borrowing reserve will be cancelled and any monthly payments being made will cease.

Unlike a conventional mortgage, there is no set repayment date and there are no monthly loan payments to make. The outstanding loan becomes repayable, any unused borrowing reserve is cancelled and any regular advance release ceases when one of the following occurs:

• Your property is sold.
• Your property ceases to be your main residence (because you have moved into long-term care, sheltered accommodation, to live permanently with relatives or for any other reason).
• You die.

When repayment is due the full amount of the loan must be repaid, subject to National Counties 'No Negative Equity Guarantee'. The redemption amount will be made up of the amount(s) borrowed (including any monthly advance releases and other subsequent lump sum advances), any unpaid charges and the accrued interest.

 Lifetime Mortgage Interest 

The interest rate charged under the Flexible Drawdown Lifetime Mortgage is always fixed and once part of the loan facility has been paid to you the fixed rate applying to that part will not change in the future. This allows you to accurately estimate the size of your future outstanding mortgage debt. The interest rate for money to be drawn from the borrowing reserve is set in advance, either when you first apply for the Flexible Drawdown Lifetime Mortgage, at subsequent borrowing reserve interest rate changes or when you apply for an additional loan to increase your overall loan facility.

Interest is calculated on a daily basis on transactions as they occur. The interest due is added to the capital outstanding at the end of each month. This means that any payments you may choose to make reduce the interest payable from the day they are received.

Under the terms of the Flexible Drawdown Lifetime Mortgage, you make no monthly payments during the term of the loan. Instead, the interest accumulates and is added monthly to the mortgage balance. When the mortgaged property ceases to be your main residence (perhaps because you have moved to live with a relative or into residential care) or you die, the loan (including any monthly advance releases, subsequent lump sum advances, unpaid charges and accrued interest) must be repaid within 12 months, normally from the proceeds of selling the property. During that period interest will continue to be charged on the loan at the relevant fixed rate(s).

When the property is sold, if the sale price is insufficient to meet the amount required to fully redeem the mortgage National Counties guarantee not to ask you or your estate to make up the shortfall. Any positive difference between the sale proceeds and the amount required to redeem the mortgage remains with you or your estate.

The Flexible Drawdown Lifetime Mortgage allows you to stay in your home until you decide to move out of it irrespective of what happens to interest rates or property values in the future. In the meantime, you continue to be the owner of the property and remain responsible for maintaining it to a good standard and for insuring it.

Statements

To help you to keep track of your Flexible Drawdown Lifetime Mortgage, we will send you a statement each year showing you details of the transactions that have taken place on your mortgage during the previous calendar year.

Type & Value of Property

National Counties will consider most types of residential properties in England and Wales, although the following will apply:

• The property must be your main residence, in good condition, of conventional layout and construction and have more than one bedroom.
• The property must be worth at least £125,000. There is no upper value limit.
• If the property is leasehold, the remaining term of the lease at the start of our mortgage must be at least 80 years.
• The property must not be being purchased under the "Right to Buy" scheme.
• Sheltered accommodation or assisted living schemes are not acceptable.

The property must currently be mortgage free or if there is a mortgage outstanding then this must be repaid either before or when the new Flexible Drawdown Lifetime Mortgage begins. You can use the funds released through the Flexible Drawdown Lifetime Mortgage to do this.

You will not be able to use the property as security for another loan whilst it is mortgaged to National Counties under the Flexible Drawdown Lifetime Mortgage scheme.

National Counties will require you to maintain the property in good condition whilst it is mortgaged to them. They reserve the right to periodically inspect the property (subject to giving you advance notice) and may require you to make repairs (at your expense) in order to ensure that the property remains in a good condition.

THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS,
ASK FOR A PERSONALISED ILLUSTRATION.