New Lifetime Mortgage Option Expands Borrowing Limits

UK-based Standard Life Home Finance has expanded its range of financial options for homeowners with the launch of its new Horizon 650 plan, part of its Horizon lifetime mortgage series. This new offering allows customers to unlock up to 52% loan-to-value (LTV) from their homes, which is the highest available in the current range. As of April, the plan is accepting applications from individuals aged between 55 and 84, catering specifically to those looking to maximise their borrowing potential.

Features of Horizon 650

Horizon 650 isn’t just about higher borrowing limits. It comes with features designed to provide flexibility and security to borrowers:

  • Partial Capital Repayments: From day one, homeowners can make partial repayments of the capital without penalties, giving them control over their loan balance.
  • Fixed Early Repayment Charges (ERC): The plan locks in early repayment charges for eight years, providing predictability in repayment costs.
  • ERC Exemption for Critical Life Events: If the first borrower passes away or needs to move into long-term care, early repayment charges are waived, alleviating financial stress during difficult times.
  • Downsizing Protection: From the completion of the loan, borrowers have the option to downsize their home and repay the mortgage without facing early repayment charges, offering further flexibility as circumstances change.

Expanding Choices for Homeowners

Kay Westgarth, Sales Director at Standard Life Home Finance, emphasises the timing and benefits of this new plan. “As the impact of inflationary pressures begins to ease, we are delighted to be able to add this new plan to our Horizon range, bolstering the diverse range of options already available,” she stated. The plan was introduced to offer greater flexibility in how funds are utilised, reinforcing Standard Life’s commitment to helping customers leverage their housing equity to improve their financial situation.

Westgarth also highlighted the benefits to both customers and financial advisors: “We’re excited to see the benefits that this new plan will bring for our customers, as well as the advisers that we work with.” She pointed out that the launch strengthens Standard Life’s position in the equity release market and underscores their ongoing efforts to provide versatile financial solutions for living comfortably before and during retirement.


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