Newlife launched in 2003 offering equity release, mortgages, and landlord finance products. Their original mission was to provide equity release products to homeowners via lifetime mortgages. Since their formation Newlife has added more products including home reversion options. Company employees combine to offer more than 30 years experience in financial products. They take the Equity Release Council and Financial Conduct Authority regulations seriously. Lifetime mortgage products provided by Newlife include a standard lifetime mortgage, flexible lump sum lifetime mortgage, and second home lifetime mortgage.
Types of Equity Release
The lump sum lifetime mortgage features a release of funds based on homeowner needs. The homeowner will own 100% of the property, with an outstanding mortgage. Repayment is not due during their life, but after death or a move to an assisted living facility. The principle balance and any interest accrued are repaid when the home is sold. The interest rate is fixed.
The Flexible lifetime mortgage by Newlife is a drawdown lifetime mortgage. An initial amount is released, where the rest of the maximum LTV is kept in a cash reserve facility. Like the lump sum product no repayment is necessary until death or move to long term care. Interest only accumulates onto the portion of funds withdrawn in the initial sum and subsequent withdrawals. The interest rate is fixed at the time of the initial sum and fixed again with additional withdrawals. This sets the interest rate at the current market rate for subsequent withdrawals.
Qualifying Criteria of the Plans
A minimum age for single applicants is 65. Joint applicants must be 70. There is no maximum age. The minimum initial advance is set at £10,000 with a maximum of £490,000 based on the loan to value ratio. The loan to value percentage is protected by a no negative equity guarantee where the loan value plus interest cannot exceed the sale value. Newlife requires a minimum property value of £70,000 with no maximum value set.
If using the drawdown mortgage a minimum of £1,000 has to be withdrawn for all subsequent tax free cash released.
Options to Add
Newlife offers free inheritance protection to all their qualified applicants. Inheritance protection keeps a percentage of the home value aside for beneficiaries. It cannot be calculated as usable equity. For example if the maximum LTV is £80,000 with a release of £60,000 then Newlife will divide the initial sum by the maximum amount ensuring 75% of the home equity is available, while 25% is protected under the inheritance clause.