THE HALIFAX RETIREMENT HOME PLAN HAS BEEN WITHDRAWN WITH EFFECT FROM WEDNESDAY 17TH AUGUST.
Equity Release Supermarket still has access to additional interest only lifetime mortgages.
If you still require information please click here, or alternatively to discuss your options please contact us on: -
Please note that existing Halifax Retirement Home Plan customers can still move home with their Halifax mortgage & are eligible, subject to underwriting criteria, to borrow additional funds by way of a further advance.
If you have an existing Halifax Retirement Home Plan customer & wish to discuss either of these options please complete our contact form.
Halifax Retirement Home Plan
A unique product designed specifically for the retired, the Halifax Retirement Home Plan is another form of lifetime mortgage.
Not available via the Halifax branch network, the Halifax Retirement Home Plan mortgage can only be taken out through selective qualified financial advisers.
The product provides mortgages for pensioners & is an alternative to the equity release roll-up scheme. Whereas an equity release balance will increase over time, the Halifax Retirement Home Plan will always maintain the same balance. This is due to the fact that only monthly interest contributions need to be paid.
The minimum starting age is usually 65; however discretion is available if all parties are now retired & can also be dependent on individual circumstances. Additionally, the mortgage can only be supported based on pension incomes, certain rental income & even some state benefits. These must all be sufficient to meet the Halifax Retirement Home Plan affordability calculator. The overall maximum amount that can be raised is 75% of the property value, however this is still subject to income verification.
A maximum term of upto 40 years can be selected which gives the Halifax Retirement Home Plan its ‘lifetime mortgage’ tag. Therefore this retirement mortgage is only repaid when the house is eventually sold, either on death or earlier sale of property such as downsizing.
Beneficiaries therefore have the advantage of knowing their inheritance will be the sale value, less the balance of the outstanding mortgage.
The amount that can be borrowed on the Halifax Retirement Home Plan is based on retirement income & overall affordability. Therefore, all sources of income will need to be proven.
The maximum amount that can be borrowed on this Halifax equity release scheme is upto 75% of the property value & the plan can be used to either remortgage or to fund a house purchase with a minimum loan of £15,000.
A major advantage of the Halifax Retirement Home Plan is that all the normal Halifax rates within their product range can be selected, with a wide choice of fixed & tracker rates available.
(Click here for latest Halifax Retirement Home Plan lifetime mortgage interest rates)
As an example, a house purchase borrowing £50,000 on the Halifax current 2 year tracker rate of 2.44%, would result in a monthly interest only payment of £101.68pm. (The overall cost for comparison is 4.1% APR).
Halifax Retirement Home Plan An Alternative To Equity Release
Funds can be raised for any purpose, but experience has shown that the following reasons to supplement lifestyles are the most popular: -
• House purchase
• Debt Consolidation
• Home improvements
• Gifts to children
Anyone holding an existing Halifax mortgage can still transfer to the Halifax Retirement Home Plan. Furthermore, those looking to remortgage from another lender can benefit from the Halifax remortgage package, including free valuation & free standard legal fees & currently there are NO application fees on selective products.
The Halifax Retirement Home Plan was a popular method of raising tax free cash by way of pensioner mortgages.
This is a lifetime mortgage & therefore monthly payments must be maintained to ensure eligibility.
For a lifetime interest only mortgage with NO income verification, more commonly known as self certification mortgage, please see our details on the Stonehaven Interest Select equity release plan.
Since, the withdrawal of the Halifax Retirement Home Plan, new & more innovative equity release schemes have been introduced. Equity Release Supermarket can now offer retirement mortgages which are based on income & will run into retirement. Furthermore, we also now have equity release companies which will actually offer a flexible repayment options such as the Aviva Flexi Lifestyle Mortgage & the Hodge Flexible Lifetime Mortgage.
For further advice on the alternatives to the Halifax Retirement Home Plan contact the team on 0800 678 5159.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
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