Status: You are viewing the version of the handbook as on 2009-03-31.

lifetime mortgage

    7a regulated mortgage contract under which:

      1. (a) entry into the mortgage is restricted to older customers above a specified age;

    and

      1. (b) the mortgage lender may or may not specify a mortgage term, but will not seek full repayment of the loan (including interest, if any, outstanding) until the occurrence of one or more of the following:
        1. (i) the death of the customer; or
        1. (ii) the customer leaves the mortgaged land to live elsewhere and has no reasonable prospect of returning (for example by moving into residential care); or
        1. (iii) the customer acquires another dwelling for use as his main residence; or
        1. (iv) the customer sells the mortgaged land; or
        1. (v) the mortgage lender exercises its legal right to take possession of the mortgaged land under the terms of the contract.

    and

      1. (c) while the customer continues to occupy the mortgaged land as his main residence:
        1. (i) no instalment repayments of the capital and no payment of interest on the capital (other than interest charged when all or part of the capital is repaid voluntarily by the customer), are due or capable of becoming due; or
        1. (ii) although interest payments may become due, no full or partial repayment of the capital is due or capable of becoming due; or
        1. (iii) although interest payments and partial repayment of the capital may become due, no full repayment of the capital is due or capable of becoming due.