Pure Retirement entered the equity release market in 2013 and a therefore one of the newer lifetime mortgage companies to the equity release market. They provide lifetime mortgages to homeowners. Pure Retirement is regulated by the Financial Conduct Authority and adheres to the Equity Release Council regulations. The company has a goal of providing a quicker, more cost effective options for lifetime mortgages than other companies. The Pure Retirement Drawdown Plan is just one of their products.
Features and Benefits
This is a drawdown lifetime mortgage with cash reserve facility. Homeowners will receive a tax free lump sum of cash initially, and then have access to future drawdown equity as they need it. Lending criteria requires the property to be in England, Wales, or mainland Scotland. The property value must be at least £70,000.
Pure Retirement has a high minimum age at 70. The loan to value begins at 36%, which is also higher than other products on the market. The lowest lump sum to release in the beginning is £25,000, where future withdrawals need to be £5,000.
Homeowners that take £45,000 in the initial release will be offered a contribution towards legal and advice fees, plus no arrangement fee.
Pure Retirement may allow a transfer of the lifetime mortgage. It is dependent on the lending criteria at the time a homeowner wishes to make a transfer. There may be a requirement to pay back some of the loan before a transfer can happen. Feeds will apply for the transfer if it is approved.
There is a potential to release additional funds based on the property value appreciation. It is also based on lending criteria of the time a homeowner wishes to increase their release.
Repayment of the equity release loan is required at death or move to long term facilities. The loan may be subject to early repayment charges should someone attempt to make payments throughout the life of the loan. The repayment will include the principle sum, any further withdrawals, and the interest that has accrued.
Interest accrues on the loan amount used, not what is in the drawdown facility account. Pure Retirement acknowledges their interest rates may be higher due to the higher released amount. It is also based on the rate being fixed for life versus a changing rate.
Pure Retirement offers free valuations and no application fee. They also provide £600 towards legal fees and £500 towards an advice fee. There are special criteria for the contributions and Pure Retirement offer a higher loan-to-value than most of its competitors.