Lifetime Mortgages  

Lifetime mortgage provider launches advice feature

Lifetime mortgage provider launches advice feature

Responsible Lending has launched a tailored drawdown feature on its lifetime mortgage range, offering advice to clients purchasing it.

The drawdown option allows borrowers to release money from a cash facility, initially via a lump sum and then regular payments. 

The cash reserve facility can be adjusted and limited by a regulated financial adviser, ensuring it is appropriate for their future plans. 

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To this end Responsible Lending is giving clients access to advice from its broker sister-company Responsible Life.

Keith Haggart, managing director of Responsible Lending, said: "Lifetime Mortgages have come a long way in recent years and this latest innovation completes the circle for regulated financial advice on these kinds of products. 

"There is now no area of a Responsible Lending lifetime mortgage that is not tested against its impact on a borrower’s financial position, both now and into the future.

"This is the responsible thing to do and we expect this feature to become an industry standard."

Scott Gallacher, chartered financial planner at Rowley Turton, said: "I agree with Responsible Lending’s concern about people drawing down more than they actually need from a lifetime mortgage and therefore incurring unnecessary interest costs. 

"Consequently, tailoring the drawdown facility to the client's particular requirements could be potentially very beneficial."

All Responsible Lending products have a no-negative equity guarantee, flexible repayments, tiered early repayment charges and offer customers the right to port their lifetime mortgage to another suitable property.