Their Home, Their Equity, Their Way

Empower your clients to borrow their way with an interest serviced lifetime mortgage*, available on both lump sum and drawdown plans.

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*Interest servicing with Pure Retirement meets the Equity Release Council's core product standards for lifetime mortgages.

How interest servicing with Heritage works

The interest servicing option can be selected when applying for an initial loan, and an interest rate discount will apply for customers making monthly payments of at least 25% of the monthly interest. After the lifetime mortgage has been set up, the monthly payment amount can't be changed; customers can choose to stop payments at any time.

Property value: £275,000
Release amount: £60,000
Based on a Heritage lifetime mortgage plan
Interest rate
Monthly payments
Amount owed after 15 years
Savings over full interest roll-up
Full interest roll-up
7.99% MER
£0
£198,121
£0
With a 25% or more payment
6.99% MER (1% discount)
£87.38 (Minimum payment)
£143,012
£39,381*
(if payments maintained)

*Interest serviced example based on an estimated 15-year term, price correct as of September 2024.

Interest servicing is currently available on our Heritage range, excluding Heritage Freedom. Interest servicing customers can take up to three monthly payment holidays in every 12-month period. If they miss more the interest rate will increase as the discount no longer applies. For further information on Heritage's features, click the link below to view the full plan.

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Illustrative example:

  • Property value: £275,000
  • Initial loan: £60,000

With roll-up

  • Interest rate: 7.99% MER
  • Monthly payments: £0
  • Amount owed after 15 years: £198,121
  • Savings over full interest roll-up: £0

With interest servicing

  • Interest rate: 6.99% MER
  • Monthly payments: £87.38
  • Amount owed after 15 years: £143,012
  • Savings over full interest roll-up: £39,381*
    *if payments maintained

Interest servicing is currently available on our Heritage range, excluding Heritage Freedom. Interest servicing customers can take up to three monthly payment holidays in every 12-month period. If they miss more the interest rate will increase as the discount no longer applies. For further information on Heritage's features, click the link below to view the full plan.

Discover Heritage

Interest servicing calculator

We've developed a universal lifetime mortgage calculator to help you illustrate how interest servicing works. This can be used with data from any sourcing platform. We'll keep you informed on version updates and usage tips.

What are the benefits of an interest serviced lifetime mortgage?

By servicing the interest monthly, customers not only benefit from reduced interest rates but a reduction in the overall cost of borrowing. Interest servicing customers making regular monthly payments and receiving the interest rate discount will not be able to make additional partial repayments.

  • Interest rates discounted up to 1%
  • Available on lump sum and drawdown lifetime mortgages
  • Option to service the interest on additional borrowing
  • Three monthly payment holidays in every 12-month period
  • Full visibility of their plan and payments with MyPure
  • Offering the same great lending criteria as our Heritage lifetime mortgages

Interest servicing with Pure Retirement meets the Equity Release Council's core product standards for lifetime mortgages.

CEO

Thoughts from our CEO

Hear more about interest servicing with Heritage from our CEO, and how customers who make regular payments on their lifetime mortgage can reduce their overall cost of borrowing.

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Interest servicing resources and events

Explore our highly informative webinars and videos introducing interest servicing with Heritage lifetime mortgages. Learn how to source interest serviced lifetime mortgages in a webinar with later-life sourcing experts. Register for our upcoming events today.

Hosted by Scott Burman

Introducing interest servicing to Heritage lifetime mortgages

Created by Advise Wise

Sourcing an interest serviced lifetime mortgage

Available on YouTube

What is an interest serviced lifetime mortgage?

Client scenarios: Interest servicing at work

A 70-year-old's journey through interest servicing with 40% LTV

Mike and Martha replace IO mortgage with an interest serviced lifetime mortgage

Explore the full scope of interest servicing with Heritage lifetime mortgages

Discover our collection of official documents and delve into the details of how interest servicing could benefit your clients.

Visit our Heritage product page for full documentation. Discover Heritage

Do you have any questions about
interest servicing?

Our Intermediary Sales Team are on hand to support you whether you have a specific case you'd like to discuss or have some questions about our interest servicing with Heritage lifetime mortgages.

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