Pure Retirement, a key player in the mortgage industry, has revitalised its approach to lifetime mortgages, particularly focusing on high loan-to-value (LTV) options. With the latest updates, homeowners, especially those aged 70 and above, can now access a larger portion of their home’s value than was previously possible.
Special 3 – A New Wave of LTVs
The introduction of the Special 3 product marks a significant milestone, offering up to 40% LTV for individuals aged 70, and an impressive 50.5% LTV for those aged 80 and over. This development not only increases the maximum loan amount available to borrowers but also makes it accessible at a younger age, starting from 60 years old.
Broader Accessibility and Removed Fees
In an effort to make these high LTV mortgages more attainable, Pure Retirement has extended eligibility to include both single and joint life applications. Additionally, the company has eliminated arrangement fees across all standard products in the Heritage range, with the exception of the Heritage Freedom option. This move is expected to lower the upfront costs for borrowers, making it an even more attractive choice.
Complementing the core Heritage offerings, the Heritage Freedom products stand out by allowing customers to repay up to 20% or 40% of their loan each year without facing an early repayment charge (ERC). This feature caters to individuals who anticipate receiving significant sums of money, such as an inheritance or pension, and prefer to use these funds to decrease their mortgage costs.
Chris Buchanan, the head of product at Pure Retirement, expressed enthusiasm about the new changes, “I’m pleased that Pure Retirement can now offer a tangible alternative in the higher LTV lifetime mortgage market. The combination of our higher LTVs, removal of the arrangement fee across the standard Heritage range and our market leading service will be a compelling proposition for advisers. In addition, reducing the minimum age and opening up to joint life will help to make the higher LTVs more accessible for clients.”