Just Retirement – Roll-Up Lifetime Mortgage

Just Retirement is one of the more experienced equity release companies in providing competitive equity release schemes, having broken into the market in 2004. During this time, this lender has been able to provide retirement solutions to over 158,000 customers and has quickly grown to be one of the largest providers of enhanced annuities aswell.

The roll-up lifetime mortgage offered by Just Retirement is one of the more flexible options available when it comes to drawdown plans. Not only does it allow for money to be released from property but that release can take place on an on-going basis. Better still, interest only accrues on the amount that is actually released.

There are guidelines for qualifying for the Roll-Up Lifetime Mortgage offered by Just Retirement. Some of the eligibility rules include:
• Minimum age of 60
• Own a home based within the UK
• Minimum valuation of £70,000

Just Retirement will lend anywhere from £10,000 to £600,000 but the original loan amount must be at least £10,000. The amount available for loan will depend on age and property value. This withdrawal can be taken all at once or as a smaller amount up-front with the remaining amount saved away in a cash reserve. For those looking to borrow larger amounts, this withdrawal scheme can be helpful. The withdrawal can be in either a one-time up-front large payment or it can be released in several smaller payments. These subsequent withdrawals can be taken on an as-needed basis. There are limits applied to the maximum amount that can be borrowed but these are established on an individual basis.

The interest rate applied from Just Retirement is fixed once the original withdrawal is made. This initial borrowed amount will be charged interest as will all other future withdrawals if and when they are made. This interest is added to the loan each year and charged on the amount of the loan along with the interest that has already accrued. So, in a sense, the interest ‘rolls up’ on a regular basis. This is important to keep in mind when it comes to repaying the loan. This repayment will take place when the home is sold, which typically occurs when the homeowner either passes away or moves into permanent long term care. It is important to consider that the amount due may be much greater than the original amount borrowed because of the interest accrued and rolled up on the original loan amount.