Pure Retirement began offering lifetime mortgages in 2010. It is headquartered in Leeds and the first equity release company to enter the UK market in several years. Pure Retirement offers a drawdown plan which aims to have its own niche in the equity release market by making its products have a cheap route to market. It is the first marketable lifetime mortgage product they started offering.
Pure Retirement launched their second plan – the Pure Lump Sum Plan in 2014. Pure Retirement believes in transparency and costs effective solutions towards equity release set-up costs which aim to be in keeping with UK regulations & meeting Equity Release Council standards.
The Pure Retirement Drawdown plan provides an overall maximum cash facility from which the homeowner can decide how much to initially withdraw from. Clients are able to take a lump sum at the beginning of the term and then continue withdrawing from the reserve facility previously created. Once the reserve has no funds therein, the homeowners can potentially re-apply for further funds subject to lender criteria.
Product Criteria of Pure Retirement Plans
Applicants in Wales, England, and mainland Scotland can qualify for this drawdown lifetime mortgage scheme. Homeowners need to be aged at least 70, with a property minimum value of £70,000. The initial tax free cash sum has a higher minimum lump sum than competitors at £25,000. It comes from the higher loan-to-value percentage and is where the Pure Plan is targeted towards. Pure Retirement’s loan-to-value percentages start at 36% (age 70) and increase the LTV percentage as the age increases.
Any withdrawals after the initial sum must be a minimum of £5,000. There are no additional charges for withdrawing; however, interest does accrue on the initial sum taken plus any subsequent withdrawals.
Pure Retirement adheres to the no negative equity requirement imposed by the Equity Release Council & applies across the equity release industry. The interest rolls up onto the capital of the loan based on what is withdrawn from the account. The lump sum, cash reserve plus interest cannot total more than the property value.
Additional Notes for this Drawdown Mortgage
As a drawdown mortgage there is some inheritance protection. It is based on the homeowner and their usage of the equity product. Any funds left in the reserve or not a part of the initial release are provided as inheritance to the homeowners’ heirs as long as the home sale supports this. The house is sold for repayment where the balance is paid in full.
Homeowners have the right to live in the home until death or a move to a residential facility. Savings are provided on the fees including advice fees in certain situations based on the initial loan amount.
Incentives for Pure Retirement Equity Release
The drawdown plan has no exclusive incentives; however, the company does provide free valuations and no application fee. Additionally £500 is given towards advice charges as well as £600 towards legal costs. This incentive option applies on equity releases of £45,000 or more.