Interest servicing

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.

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

customer care

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.

Illustrative example:

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

With roll-up

Interest rate: 7.62% MER
Monthly payments: £0
Amount owed after 15 years: £187,491
Savings over full interest roll-up: £0

With interest servicing

Interest rate: 7.02% MER
Monthly payments: £87.75
Amount owed after 15 years: £143,586
Savings over full interest roll-up: £28,111*

*if payments maintained

Interest servicing is currently available on our Heritage range. Interest servicing customers can take up to three monthly payment holidays in every 12-month period. If they miss more than this 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.

Interest serviced 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.

Calculator illustration

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 discounts available
  • 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.

Thoughts from our CEO

We brought this lifetime mortgage to the market to provide your customers with even more options, should they be able to make regular payments to their lifetime mortgage plan.

CEO

Client scenarios: Interest servicing at work

Introducing interest servicing

How an interest serviced lifetime mortgage helps Mark retire

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Sourcing an interest serviced lifetime mortgage

Replacing an interest only mortgage with an interest serviced lifetime mortgage

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Explore the full scope of the 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.