Responsible Lending has today introduced financial advice on tailored drawdown options across all of its products.
The lifetime mortgage provider said it means its customers have the benefit of financial advice on a key aspect of retirement planning that has been subject to a one-size-fits-all approach across the industry in the past.
Responsible Lending sees assessments of the suitability of drawdown as an important step in ensuring the lifetime mortgage market serves the interests of its customers by providing the most appropriate product.
Drawdown means customers have a cash facility that they can draw on but are not charged any interest until they take the money. However, a drawdown facility that is too large could be out of step with a borrower’s personal circumstances, or retirement and inheritance plans, Responsible Lending says.
This latest range of Responsible Lending products means that the size of the cash reserve facility can now be adjusted and limited by the customer’s financial adviser, ensuring that the drawdown facility is the appropriate size to meet the customer’s future plans. Borrowers will be encouraged to take the right amount for their needs, rather than just the maximum available.
All Responsible Lending products feature a No-Negative Equity Guarantee, flexible repayments, tiered early repayment charges and the right to port their lifetime mortgage to another suitable property. All products on the range come with free valuations and no lender arrangement fees.
All Responsible Lending products continue to be available through 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.”