Legal information

Over 18s only

Maximum borrowing amounts and higher lending charge

The maximum amount you can borrow, and whether you are required to pay a higher lending charge, depends on the percentage of your loan to valuation of your property. The premium will be charged on the amount of the loan above 75% of the purchase price, or valuation if lower. This premium will be retained by the bank and will not be used to purchase mortgage indemnity insurance. The scale charges are:

NB. The maximum for the Professional scheme is £250,000 for loans between 90.01% and 95% LTV. The maximum loan size for our fixed rates and remortgage only products (up to 85% LTV) is £500,000. Loans in excess of this will be considered on an individual basis.

Higher lending charge example

Based on a mortgage of £50,000 on a property valued at £55,000. The loan is 90.01% of the valuation so the HLC rate from the table is 8.95%. 75% of the valuation of £55,000 is £41,250 which is then deducted from the loan amount of £55,000 i.e. £8,750, This multiplied by the HLC rate of 8.95% gives a HLC charge of £783.13.

Higher lending charge - Further Advance

A higher lending charge will apply if the total borrowing secured by the property is more that 90% of the valuation of the property, or projected valuation.

The scale charges are:

Fixed rate mortgages: subject to availability of funds. Where a fixed rate is chosen, we advise that funds are booked as soon as possible.

Fixed rate arrangement fees: apply on booking a fixed rate and can be added to the loan. The mortgage must be drawn down within three months of the booking fee being incurred. This fee is retained by the Bank if you cancel the booking.

Arrangement fees can be added to the loan.

Legal and Valuation Fees: These may be added to the loan, subject to the maximum valuation.

Facility to Value (FTV): Your agreed borrowing limit for an Offset Flexible Mortgage, expressed as a percentage of the property value (or purchase price if lower). The maximum FTV is 90%, including any fees that are added to the loan.

Loan to Value (LTV): Your loan expressed as a percentage of the property value (or the purchase price if lower).

Variable rate mortgages: Interest rates are subject to change and can go up as well as down. Your monthly payment amount will move accordingly.

Remortgage products: For all remortgage products, the Bank will pay the valuation fee and its legal costs for completing the security, providing the Bank's nominated solicitor and valuer are used. You will be required to pay any expenses relating to unusual matters and any early repayment charge, which may be charged by your existing lender. You are entitled to independent legal advice and will be responsible for that cost.

Applicants must be aged 60 or over.

The property to be mortgaged must be worth at least £70,000. There's no maximum property value.

Maximum borrowing limits apply - these will depend on your age (or the age of the youngest applicant if a joint mortgage) and the value of your property.

Application fee: You can pay the application fee upfront or have it added to the loan, as long as this doesn't take you over the maximum amount we can lend you. Remember, if you add it to the loan this will increase the amount on which you will be charged interest. If you're already borrowing the maximum allowed and taking the money as a lump sum payment, the fee can be taken from this payment. See the table below for details of the other fees for setting up the Lifetime Mortgage.

Early repayment charge: This will apply if you repay the Lifetime Mortgage in full within the first 10 years. We'll calculate the charge as a percentage of the outstanding balance - see the table below for full details. The charge won't apply if you partly repay the mortgage, or if it's repaid in full because you die or have to move into long-term care.

Interest: We calculate this daily and apply it monthly. Because there are no monthly repayments, interest on the amount you borrow will build up quicker than with a conventional mortgage.

Interest rate: This is fixed for the life of the Lifetime Mortgage and won't be affected by changes in the Bank of England base rate.

Legal fees: We recommend you take independent legal advice from a solicitor. You will be responsible for paying any legal costs. You can choose your own legal adviser.

Loan: The Lifetime Mortgage is a loan secured against your home.

Valuation fee: You will need to pay the valuation fee upfront. The amount of this fee will depend upon the property value.

Setting up your Lifetime Mortgage:

These fees won't apply if you only partly repay the mortgage or if it's repaid in full because you die or have to move into long-term care.