Pure Retirement are an award winning Yorkshire-based equity release lender who've arrived in the equity release marketplace with a wealth of experience based on some of the major companies in the industry.
Pure base their lending solutions around an external funding source for their equity release schemes. The Pure Retirement Classic range of lifetime mortgage plans are funded by a leading UK insurer.
There are a suite of Classic Lite schemes - all providing a mixture of lifetime mortgage features and combinations of differing loan-to-value ratios and flexible features - dependent on which plan is selected.
These Pure Retirement equity release plans are currently only available via six specialist equity release adviser firms, of which Compare Equity Release has been selected. We are therefore able to bring you Pure's market leading interest rates, which also include voluntary partial payments and fixed early repayment charges.
Aimed towards the lower end of the interest rate scale, the Pure Classic Super Lite Plan offer homeowners the simplicity of taking a one-off tax-free lump sum from the equity within their property and being able to manage the interest charged each month.
The primary difference between the Classic plans is the loan size available and the respective interest rate. So, choosing between the the many versions will likely depend on the loan amount and features needed by the homeowner.
With the Pure Drawdown Classic Super Lite mortgage, the homeowner receives an initial tax-free lump sum payment which must be a minimum release of £10,000. The maximum loan available is £1 million. The loan amount made available by Pure is decided based on the youngest homeowner’s age and the value of the property.
Homeowners must be between 55 and 84 years old to be eligible for the Drawdown Classic Lite and it's available on both single and joint lives basis.
The property must be located either in mainland Scotland, Wales or England and must have a valuation between £100,000 and £2 million to qualify.
Once an initial tranche of funds have been released, there is the option to repay upto 10% of the initial loan amount within any 12 month period. No more than 12 partial payments can be made in any 12 month period. The voluntary partial payments must be at least £50 each time and the minimum balance remaining after the repayment is just £1.00.
Pure will provide a mandate to make monthly payments from a UK bank account, which is sent out with their welcome pack. This allows the Classic Super Lite plan to be managed as an interest-only lifetime mortgage.
Pure Retirement provide the industry standard no negative equity guarantee with this product. So, if the eventual sale of the property does not cover the outstanding loan balance, there is no debt owed to the lender by the homeowner’s estate.
This product is portable, so it can be moved to another property if the homeowner moves and wants to take the lifetime mortgage with them.
There is also a downsizing protection in place which allows the homeowner to move to another property and repay their loan, so long as the sale of the property and the move take place at least 5 years after loan completion.
Early repayment charges are fixed for the first 15 years with this product. For the first five years, the rate is 6%. For years 5 to 10, the charge is 3% and for months 10 to 15, there a 1% early repayment charge incurred. No penalties exist upon repayment of the Classic plan after 15 years.
The Pure Retirement Classic Super Lite is a suitable product for any homeowner who wants a lifetime mortgage, but is also concerned with the impact of interest roll-up. This product is ideal for any homeowner who wants the freedom to make monthly voluntary payments on their loan when they can, in order to keep their balance at the same level as it started.
**The 3-year early repayment charge exemption applies to joint life applications should the loan be repaid within 3 years of death, or long term care of the partner
Call the Compare Equity Release team on 0800 678 5169 for further details, or to request a quote on the Pure Retirement Classic Super Lite interest only lifetime mortgage.