Equity Release

A lifetime mortgage is one of the ways in which we can help you release the equity from your home. You'll receive a cash lump sum to spend on whatever you want - and you'll retain ownership of your home.

What is a lifetime mortgage?

A lifetime mortgage is a long-term loan secured against your home. Depending on the product, you can either take the full amount as a cash lump sum straight away, or take part of it immediately with the option to release all or part of the remainder in the future.

You'll have no regular repayments to make because the loan, and the interest that accumulates, is repaid by selling the property when the plan ends. At Norwich Union, we have three types of lifetime mortgage for you to choose from. You can find out more about the current interest rates and APRs for each of our lifetime mortgages.

Your choice of lifetime mortgages

We offer three different ways of releasing money through a lifetime mortgage:

• Lifestyle Lump Sum
  Lifestyle Lump Sum is designed to pay you a one-off lump sum at the start of the plan. If you need to borrow more in the future, you may be able to, but it depends on the lending criteria at the time.

• Lifestyle Lump Sum Max
  Lifestyle Lump Sum Max also pays out a one-off lump sum at the start of the plan, but a larger amount than the Lifestyle Lump Sum. If you need to borrow more in the future, you may be able to but it depends on the lending criteria at the time. The overall cost of the Lifestyle Lump Sum Max is higher than the Lifestyle Lump Sum, because the product provides a larger cash lump sum.

• Lifestyle Flexible Option
  Lifestyle Flexible Option allows you to take a lower initial loan and have access to a reserve of money in the future, as and when you need it.

How much could you borrow?

The amount you can borrow depends on your age and the value of your home.

The benefits of a lifetime mortgage

• You receive a cash lump sum to spend on whatever you want.

• You keep ownership of your home and can continue to live there until you die or go into long-term care.

• There are no monthly repayments to make, as the loan and interest are rolled up and repaid by the sale of your property when the plan ends. Find out more about the current interest rates and APRs.

• You can still move if you want to, as long as your new property meets our conditions.

• Our ‘no negative equity’ guarantee means you'll never have to pay back more than the market value of your home, whatever happens to house prices.

Things to think about

• A lifetime mortgage charges interest on the total amount of the loan including the interest that has already accumulated, so the amount owed will quickly increase.

• Taking a cash lump sum from the plan will reduce your stake in the value of your home and the amount of any inheritance you will leave.

• You don't have to pay tax on the amount you borrow, but it may affect your entitlement to tax and means-tested benefits.

• A lifetime mortgage is a long-term commitment - it can be expensive if you decide to repay the loan early and you may have to pay a substantial early repayment charge.

Your next steps

We'll guide you through all the information you need to make your decision and how to apply for a lifetime mortgage.
Any advice given will relate only to the products sold or marketed by Norwich Union.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

Norwich Union Equity Release Limited. Registered in England No 3286484. Registered office 2 Rougier Street York YO90 1UU. Authorised and regulated by the Financial Services Authority.

WC07043 10/2008