Prudential Equity Release Mortgage Schemes

To find out more about Prudential 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.

What is a Prudential Equity Release Lifetime mortgage?
The Prudential Lifetime Mortgage is a new enhanced equity release product with added flexibility and options to more closely meet your needs in retirement. Prudential’s Lifetime Mortgage offers the choice of either a Lump Sum product or Increasing Cash Reserve product as well as access to their Equity Guarantee and Maximum Release options.

The new and improved Lifetime Mortgage now offers -

• A unique Equity Guarantee option which allows you to safeguard a proportion of the current equity in your home without affecting you maximum LTV
• A reduced minimum age limit now 55yrs
• A reduced minimum property value now £80,000 on lump sum drawdowns
• A reduced minimum loan for Increasing Cash Reserve which is now £10,000
• A reduced minimum additional loan which is now £3,000 (Increasing Cash Reserve only)
• An increase of 1% of the property value on the increasing cash reserve account, up to a maximum of 35%

A Prudential lifetime mortgage is a great way of borrowing money against the value of your home, in the form of a long-term loan, and without the need to move.

You continue to own your own home for the duration of the lifetime mortgage and as long as you are living in it. The money released can be used for whatever you wish (so long as any outstanding mortgage has been paid off).

When releasing the value of equity in your home, there are no monthly repayments and the loan is paid back using the proceeds from the eventual sale of your property or other assets. This is usually when you die or have moved into permanent long-term care.

However, before entering into a lifetime mortgage it is always a good idea to consider your other options such as downsizing.

When taking out a Prudential Equity Release Mortgage , you should also be aware that your eligibility to means-tested benefits could be affected as could your tax position. For this reason we will always provide you with a detailed report of how your proposed lifetime mortgage could affect your eligibility to means tested benefits.

Prudential Lifetime Mortgage Options

The Prudential Lifetime Mortgage offers two options -

Option 1 - Lump Sum Option
If you need a one-off cash payment, then you can release up to 40% of the value in your home straightaway, subject to eligibility. This includes an extra 5% which is added by selecting the Maximum Release option. This option makes funds available in a lump sum so that immediate needs such as paying for healthcare, urgent home improvements or inheritance tax planning can be undertaken.

Option 2 - Increasing Cash Reserve Option
If there is no requirement to draw on the total equity available immediately, and you want to release some more in the future, the Increasing Cash Reserve option may suit your needs better.

This option provides a greater degree of flexibility with some added features:

• You can take smaller amounts when you need to
• You can release money whenever you like, and as often as you like, up to your agreed maximum allowance. (Under certain circumstances this facility of further withdrawals could be restricted.)
• Since interest only starts to build on the money when you actually release it, you can reduce the overall interest payable on your loan.
• With this option, your agreed draw down facility automatically increases every year, up to a maximum facility which is based on your age. This means you can release what you need today, while your cash reserve grows a little each year without you having to do anything.
• Equity Guarantee option - ideal if you're concerned about the possibility of not leaving any of your property's value as an inheritance for those you leave behind. You can now choose to guarantee that a certain proportion of your property's original value passes on to your family when you die.
• Gives you control and freedom over when and how you borrow .
• No time limit is applicable on cash drawdowns.
• There is no minimum waiting period on further borrowing.
• There is no upper limit on loans, subject to the agreed LTV.
• The drawdown facility is not subject to additional valuations or underwriting criteria.

Option 3  - Lump Sum Maximum Release Option

This option enables you to increase the loan available by up to 5%, and is available on both products, increasing the upper loan limits as follows:

• the maximum reserve for the Increasing Cash Reserve is 35%.
• the maximum loan to value Lump Sum is 40%.

At age 55 the limit is 15% for the Increasing Cash Reserve and 20% for the Lump Sum.

At age 80 the limit is 35% for the Increasing Cash Reserve and 40% for the Lump Sum.

The charge for this option is made by an increase to the amount to the interest rate applicable to the initial loan and any subsequent drawdown if selecting the Increasing Cash Reserve option.

Questions & Answers

Will I still own my own home?
You continue to own your own home for as long as you're living in it. You will not have to repay the loan until you move into permanent long-term care or die.

How will my wife, husband or family be protected?
If you die - a surviving borrower (for example, your wife or husband) will never be asked to move out. If you or your partner dies and the surviving borrower remarries, the loan can continue for the life of the surviving borrower.

What happens if the value of my property falls.
If your property is worth less than the amount you owe when your home is sold for the best possible price obtainable (when the last borrower dies or goes into long-term care) the difference will be covered by Prudential.  This is known as the 'No Negative Equity Guarantee' and means your estate will not be asked to pay more than the sale proceeds at the time the plan ends. 

If the sale proceeds of your home are greater than your Prudential Lifetime Mortgage balance, then you or your beneficiaries will keep the difference.

Will I still be able to leave an inheritance?
Taking out a Prudential Equity Release plan does not affect any other money that you may leave as part of your inheritance. But a lifetime mortgage will reduce, possibly to nothing, any inheritance you decide to leave from your property.
 
However, with this plan, you do have the option to add an Equity Guarantee. This will guarantee that, at the very least, a specified proportion of your home's value, at the time you start the plan, will be protected and is passed to your estate.

What is the Equity Guarantee option?

The Equity Guarantee specifies and guarantees a minimum proportion of your property's value that will be left and protected on sale.

What if I need to move?
If your circumstances change, you can transfer your plan if you want to move house. Your new home will need to fit with the conditions of the plan but it does mean that you don't have to stay where you are.  Charges will apply if the loan is transferred to a new property.

Are there limits to what I can borrow?
The amount you can release depends on your age, the value of your property and the product option that you choose.

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