Guide to the Flexible Drawdown Lifetime Mortgage

Transcription

1 Guide to the Flexible Drawdown Lifetime Mortgage Issued: 12 April 2011

2 CONTENTS 1. How the Flexible Drawdown Lifetime Mortgage works 2 Summary 2 Interest 2 How your loan is repaid 3 Staying in your home 3 Statements 3 2. Eligibility 3 Your circumstances 3 Your age 4 Size of the loan 4 Ownership of the property 4 Property condition 4 3. Type and value of property 5 4. Repaying part or all of the loan 5 Full repayment and Early Repayment Charges 5 Repaying part of the loan 6 5. Moving home 6 6. What happens if you die or move into long term care 7 Long term care 7 Death 8 Timing and interest rate 8 7. No negative equity guarantee 8 8. Other occupiers of the property 9 9. Taking advice Additional considerations 10 Legal work 10 Valuation 10 Completion fee 11 Insurance 11 Borrowing Reserve 11 Additional borrowing 12 Changes in your circumstances Charges 13 If you require documentation to be provided in large print, Braille or by audiotape, please contact us on and we will be happy to assist you. For the deaf or hard of hearing who have a textphone facility, we can be contacted through Typetalk on

3 We do not provide advice or personal recommendations relating to this product. Personalised illustrations will be provided on request. Should you require clarification on any point in this Guide please contact our Customer Centre. If you require advice on the suitability of this product for your circumstances we recommend that you take advice from an intermediary authorised by the Financial Services Authority to advise on equity release products. 1. HOW THE FLEXIBLE DRAWDOWN LIFETIME MORTGAGE WORKS Summary The Flexible Drawdown Lifetime Mortgage allows you to use your home as security for a paymentfree loan that you can use in any way you wish. It gives you an agreed loan facility to suit your needs (a amount), against which you can draw advances as the money is required by you. The initial advance at the start of the mortgage must be at least 50% of the agreed loan facility (subject to a minimum of 10,000). The remaining loan facility (called the Borrowing Reserve) can be released to you as and when required, either as ad-hoc lump sums (minimum 1,000) or as regular monthly amounts (minimum 200 p.m.), or both. This allows you to tailor your borrowing to your circumstances as they change, drawing only the money you need when you need it, keeping your financial arrangements simple and minimising the overall debt that you build up against your property. In addition, you ll have the security of knowing in advance that there are funds you can call on should you need them and how much these will cost you. After 10 years have elapsed from the date of the initial advance any remaining Borrowing Reserve will be cancelled and any monthly payments being made will cease. Unlike a conventional mortgage, there is no set repayment date and there are no monthly loan payments to make. The outstanding loan becomes repayable, any unused Borrowing Reserve is cancelled and any regular advance release ceases when one of the following occurs: Your property is sold. Your property ceases to be your main residence (because you have moved into long-term care, sheltered accommodation, to live permanently with relatives or for any other reason). You die. When repayment is due the full amount of the loan must be repaid, subject to our No Negative Equity Guarantee (described later in this Guide). The redemption amount will be made up of the amount(s) borrowed (including any monthly advance releases and other subsequent lump sum advances), any unpaid charges and the accrued interest. Interest The interest rate charged under the Flexible Drawdown Lifetime Mortgage is always fixed and once part of the loan facility has been paid to you the fixed rate applying to that part will not change in the future. This allows you to accurately estimate the size of your future outstanding mortgage debt. 2

4 The interest rate for money to be drawn from the Borrowing Reserve is set in advance, either when you first apply for the Flexible Drawdown Lifetime Mortgage, at subsequent Borrowing Reserve interest rate changes or when you apply for an Additional Loan to increase your overall loan facility. Interest is calculated on a daily basis on transactions as they occur. The interest due is added to the capital outstanding at the end of each month. This means that any payments you may choose to make reduce the interest payable from the day they are received. How your loan is paid off Under the terms of the Flexible Drawdown Lifetime Mortgage, you make no monthly payments during the term of the loan. Instead, the interest accumulates and is added monthly to the mortgage balance. When the mortgaged property ceases to be your main residence (perhaps because you have moved to live with a relative or into residential care) or you die, the loan (including any monthly advance releases, subsequent lump sum advances, unpaid charges and accrued interest) must be repaid within 12 months, normally from the proceeds of selling the property. During that period interest will continue to be charged on the loan at the relevant fixed rate(s). When the property is sold, if the sale price is insufficient to meet the amount required to fully redeem the mortgage we guarantee not to ask you or your estate to make up the shortfall. Please refer to the No Negative Equity Guarantee later in this Guide. Any positive difference between the sale proceeds and the amount required to redeem the mortgage remains with you or your estate. Staying in your home The Flexible Drawdown Lifetime Mortgage allows you to stay in your home until you decide to move out of it irrespective of what happens to interest rates or property values in the future. In the meantime, you continue to be the owner of the property and remain responsible for maintaining it to a good standard and for insuring it. Statements To help you to keep track of your Flexible Drawdown Lifetime Mortgage, we will send you a statement each year showing you details of the transactions that have taken place on your mortgage during the previous calendar year. Of course you don't have to wait until you receive your annual statement before asking about your mortgage - we are here to help. 2. ELIGIBILITY Your circumstances There are no income requirements for a Flexible Drawdown Lifetime Mortgage so you do not need to have an income to apply for this mortgage. However, because of the complex nature of this type of loan and the long term effect that it may have on your circumstances, it is essential that you (both of you in the case of a joint application) are fully aware of the commitments you are taking on and are able to deal with the arrangements and sign the application form and legal documents yourself. Because of this we will not consider applications signed under a power of attorney or where a third party is dealing with the paperwork involved in the transaction for you (other than to the extent required in the normal course of giving you legal or (where you have sought it) financial advice). 3

5 Your age Every borrower must be at least 60 years of age. There can be a maximum of two borrowers only, the youngest of which must be no older than 95. Joint borrowers do not need to be married, or civil partners and may be of the same sex. In order to confirm your age we will require sight of your Birth Certificate, your Passport or your Driving Licence. Size of the loan You choose how much you wish to borrow at the outset according to your needs. The minimum loan amount is 20,000, though you do not have to draw all of this immediately. The minimum initial advance is 50% of the agreed loan (minimum 10,000). The maximum loan amount depends on your age(s) and your property s value (see table below), subject to being no more than 250,000 including any Borrowing Reserve. Age of the youngest applicant Maximum Percentage of property value available 60 to 69 25% 70 to 74 30% 75 to 79 35% 80 to 95 40% 96 or older Not available over age 95 Ownership of the property If the property is jointly owned then the mortgage application must be in both names as well. If the property is solely owned by you but is occupied by you and your partner then we will require the property to be transferred into your joint ownership by your Solicitors at the same time that the mortgage is taken out. The application should again be in joint names in this case. If you own the property jointly as Tenants In Common then you should take specific advice on the impact of the restriction on changes of ownership due to our mortgage on your plans for the inheritance of your share of the property on your death before completing this Flexible Drawdown Lifetime Mortgage (please also refer to Changes in your Circumstances on page 13 of this Guide.). If the property is held for you under a Trust we regret that we cannot lend to you or your Trustees. Property condition We will require you to maintain your property in good condition whilst it is mortgaged to us. As a result, the initial inspection by our Valuer when you apply for the Flexible Drawdown Lifetime Mortgage may identify repairs that are required either before our mortgage can start or within a short time afterwards. In some circumstances the condition of the property may mean that we cannot lend at all or that we reduce the maximum percentage of the property value that we will consider. 4

6 3. TYPE AND VALUE OF PROPERTY We will consider most types of residential properties in England and Wales, although the following will apply: The property must be your main residence, in good condition, of conventional layout and construction and have more than one bedroom. The property must be worth at least 125,000. There is no upper value limit. If the property is leasehold, the remaining term of the lease at the start of our mortgage must be at least 80 years. The property must not be being purchased under the "Right to Buy" scheme. Sheltered accommodation or assisted living schemes are not acceptable. The property must currently be mortgage free or if there is a mortgage outstanding then this must be repaid either before or when the new Flexible Drawdown Lifetime Mortgage begins. You can use the funds released through the Flexible Drawdown Lifetime Mortgage to do this. You will not be able to use the property as security for another loan whilst it is mortgaged to us under the Flexible Drawdown Lifetime Mortgage scheme. We will require you to maintain the property in good condition whilst it is mortgaged to us. We reserve the right to periodically inspect the property (subject to giving you advance notice) and may require you to make repairs (at your expense) in order to ensure that the property remains in a good condition. If we do require you to carry out repairs we will arrange for a re-inspection to take place to confirm that the required works have been carried out. If you fail to maintain the property to the extent that its condition adversely affects the security of the property for our loan, we may exercise our power to carry out these works ourselves or, as a last resort, we may take possession of the property from you. The costs we incur in carrying out any necessary works will be added to the mortgage balance. The above criteria are specific to the Flexible Drawdown Lifetime Mortgage. If you do not meet the criteria for this product you may still be able to apply for another type of mortgage - please ask an adviser. 4. REPAYING PART OR ALL OF THE LOAN Although this mortgage is intended to be for your lifetime, you can choose to repay part or all of the balance outstanding earlier. There may be an Early Repayment Charge during the first ten years following completion of the mortgage, as described below. Full Repayment & Early Repayment Charges On full repayment of the loan during the first ten years from completion an Early Repayment Charge will be payable. The charge will be calculated using the capital balance outstanding at the end of the calendar month immediately prior to the full repayment, on a sliding scale depending on the period since the initial advance was made (within years 1-7: 5%, year 8: 4%, year 9: 3%, and within year 10: 2%). 5

7 The Early Repayment Charge will be waived if full repayment is a result of one of the following circumstances: Sale of the property following the death of the borrower (either borrower, in joint cases) Sale of the property following the move of the last occupying borrower into either (i) a residential or nursing home, (ii) sheltered accommodation, or (iii) to live permanently with a relative who will act as your carer. Transfer of the Flexible Drawdown Lifetime Mortgage to another suitable property that will be your main residence. When requesting a redemption quotation from us you or your legal representative must tell us the reason for redemption in order for you to benefit from this waiver of the Early Repayment Charge. If the loan is repaid in full after more than 10 years then no Early Repayment Charge is payable in any circumstances. Repaying part of the loan Although no mortgage payments are due, you may occasionally wish to make lump sum payments to reduce the outstanding mortgage balance. You can do so by sending a cheque (payable to National Counties Building Society followed by your account number) and covering letter to the Mortgage Accounts Department at our Head Office. These payments can be made at any time and will not normally incur an Early Repayment Charge. The minimum amount for a partial repayment is 500 and these do not affect the amount of the remaining Borrowing Reserve and cannot be redrawn. Some lump sum payments may be subject to an Early Repayment Charge if the loan is fully repaid within the same calendar month as a lump sum payment is made. For the calculation of the charge please refer to the section headed Full Repayment & Early Repayment Charges above. 5. MOVING HOME Your ability to move home will depend on any equity left after the sale of your property that you need for your new property. If there is insufficient equity because of the effect of changing house prices and accumulated interest you may not be able to move. The Flexible Drawdown Lifetime Mortgage is portable, which means that it can be transferred to a new property should you wish to move at a future date. This is subject to the new property meeting our lending criteria for this type of loan at the time (please note that sheltered accommodation and assisted living schemes are currently not acceptable as security for a loan). You must tell us in advance that you wish to move and the price you wish to sell the property for. Our agreement to the proposed sale price must be obtained before you proceed with the sale of your property. If you move to a lower value property than the one you are selling we may require you to repay a proportion of the loan outstanding so that the ratio of the balance outstanding to your property s value (as determined by our Valuer) remains the same before and after the move. Any undrawn Borrowing Reserve will be similarly reduced. If you move to a property of equal or higher value then the loan outstanding and the Borrowing 6

8 Reserve will be transferred unchanged. We will treat an application to transfer the Flexible Drawdown Lifetime Mortgage to a new property as if you are applying for the first time and require you to obtain independent legal and (where you consider it appropriate) financial advice, the cost of which you will be responsible for along with the disbursements of our legal representative. However, we will waive the normal Completion Fee to reduce the total cost of moving. Example 1: You take your initial loan at the age of 65 and borrow 50,000 against a property value of 200,000 (i.e. 25% of the property's value). You sell the property 10 years later at age 75 for 250,000, moving to a property valued at 175,000. At the time of the sale your loan, including accrued interest, amounted to 97,617, being 39% of the value of the property. This means that the total loan transferred to the new property is 68,250 (39% of 175,000) and you repay 29,367 from the sale proceeds of the original property. Example 2: You take your initial loan at the age of 71 and borrow 52,500 against a property value of 175,000 (i.e. 30% of the property's value). You sell the property 5 years later at age 76 for 160,000, moving to a smaller property valued at 125,000. At the time of the sale your loan, including accrued interest, amounted to 73,750, being 46% of the value of the property. This means that the total loan transferred to the new property is 57,500 (46% of 125,000) and you repay 16,250 from the sale proceeds of the original property. No Early Repayment Charge would be payable as your mortgage remains with us. Both of these examples exclude the expenses involved in buying and selling property which you will need to pay, such as estate agent s commission, stamp duty, legal and survey fees, etc. You should allow for these expenses when considering moving home. The percentage figures used in the examples above are for illustration purposes only so have been rounded to the next decimal place. 6. WHAT HAPPENS IF YOU DIE OR MOVE INTO LONG-TERM CARE The terms of the Flexible Drawdown Lifetime Mortgage will continue to apply whilst you occupy the property as your main residence and for up to 12 months afterwards, until the sale of the property following your death or your move into Long Term Care (by which we mean leaving the property to move into Residential or Nursing Home accommodation, Sheltered accommodation, or to live permanently with other relative(s) who will be your carer(s)). However, any unused Borrowing Reserve is cancelled as soon as the property is permanently vacated and any regular advance releases will also cease at this time. In the case of joint borrowers, these provisions will take effect on either the death of, or vacation of the property by, the last surviving borrower. Long-Term Care If you move into long-term care (either a residential or nursing home, or to live permanently with other relatives/carers) then the loan must be repaid. This will normally mean that the property must be sold unless you can repay the loan from other resources. The sale proceeds are used to repay your outstanding mortgage balance including our usual fees. You must tell us as soon as you move out of the property and into long-term care. 7

9 We may consider an application to let the property if you are leaving it because you are moving into long-term care. In this event the terms of the Flexible Drawdown Lifetime Mortgage will end when the application to let the property is agreed and our normal residential investment terms and interest rate for rental properties will take over. The letting must be managed by a commercial letting agency. We will require that full payments of mortgage interest commence and may also require repayments of capital over an agreed term. In the event that the loan outstanding, including the accrued interest, exceeds our normal maximum advance for let properties we may require some of the loan to be repaid immediately. Death Your Flexible Drawdown Lifetime Mortgage must be repaid following your death. This will usually be done through the sale of the property with the sale proceeds being used to repay your outstanding mortgage balance including our normal fees. Your personal representatives must advise us of your death. Timing and interest rate The loan must be repaid no later than 12 months after the property has been vacated. If the loan is not repaid within this period we reserve the right to exercise our standard powers under the mortgage and take possession of the property to sell it and use the proceeds to repay the loan. The Flexible Drawdown Lifetime Mortgage fixed interest rate(s) will continue to apply until the end of 12 months after the property is vacated. After this time the interest rate to be charged is either the Flexible Drawdown Lifetime Mortgage fixed rate(s) or our standard variable rate, whichever is higher. Interest will continue to be capitalised on a monthly basis. 7. NO NEGATIVE EQUITY GUARANTEE If your home is sold for more than the redemption amount (that is, the outstanding mortgage balance plus any unpaid charges) you or your estate will receive the difference. Should your home be sold for less than the redemption amount, we will not require you or your estate to make up the difference. We will accept the sales proceeds (net of estate agents fees and legal fees and disbursements) in full settlement of the debt. You or your estate will not receive anything but will also not be left with a further bill for the shortfall. This No Negative Equity Guarantee is a very important safeguard for you, your family and any future beneficiaries of your estate. It means that there is no risk of them being left with an outstanding mortgage debt after your home is sold. Equally, you could benefit if the value of your home rises at a faster rate than the accumulating loan interest. Before your property is put up for sale we must be notified of the sale price you are proposing, the estate agents fees and estimated legal fees and disbursements to establish that these are reasonable and in-line with the open market. If the proposed sale price is lower than the outstanding mortgage balance, we may require an independent valuation to be conducted. In the event of a dispute, an arbitration process will be followed using a surveyor appointed by the President of The Royal Institution of Chartered Surveyors. 8

10 8. OTHER OCCUPIERS OF THE PROPERTY Apart from the borrower(s), any other occupier (aged 17 or over at the time the mortgage completes) must sign our Form of Consent, waiving any right they have to occupy the property in favour of us. We may require the occupier(s) to take independent legal advice on the transaction before they sign the waiver form. Any fees incurred must be paid by the occupier(s). If you have a dependant living with you at the property we recommend that you consider in advance what will happen to your dependant following the death or move into long term care of the last occupying borrower. 9. TAKING ADVICE Whilst not compulsory we recommended that before applying you take advice from an intermediary authorised by the Financial Services Authority to advise on equity release products. You will be responsible for any cost incurred as well as the cost of the separate legal representation required. We do not provide advice or personal recommendation relating to this product. Entering into a mortgage that could last for the rest of your life is a big commitment and we want you to be sure that it is right for your own particular circumstances. Whilst there are a lot of positive reasons for releasing some of the money tied up in the value of your property by taking out a Flexible Drawdown Lifetime Mortgage, there are also other aspects that require careful consideration. Some of the implications of taking out this mortgage are: The loan will affect the amount of your estate and so affect those who stand to inherit from you. The value of your property can increase or decrease which will affect the amount of equity remaining in your property for you or your heirs after repayment of our loan. Your ability to move home in the future will be affected by the value of the loan outstanding reducing the amount you can spend on a new property. The equity stake that you currently have in your home could reduce to nothing due to the effect of rolled up interest and charges exceeding the future value of the property. Your eligibility for State or other benefits could be adversely affected and your personal taxation position may change. (It should be remembered that the basis of personal taxation and State or other benefits might change in the future.) If you opt to take a regular advance release, the value of the amount released could be reduced by inflation over time. There are costs associated with taking out the loan that you will have to pay. You will be committing to keeping the property in good condition and to keeping it insured. You will not be able to use the property as security for any other borrowing. Whilst this Guide provides detailed information about the way the Flexible Drawdown Lifetime 9

11 Mortgage works it is no substitute for advice about how it meets your needs and interacts with your own personal circumstances. There are alternatives to taking out a lifetime mortgages that potentially may be more suited to your circumstances. These alternatives include: home reversion schemes; selling your current property and purchasing a lower value one or renting; grant assistance, and postponing any action. It is, therefore, important that you not only take legal advice but also consider taking qualified independent financial advice as well, though the latter is not compulsory. You should also discuss your plans with your family and anyone else likely to be affected. As your personal circumstances can change significantly over time, we recommend that you take further legal and independent financial advice before renewing or drawing against your agreed Borrowing Reserve. This is intended to help you ensure that a further increase in your debt is the most appropriate course of action for you. You will be responsible for meeting the cost of the independent legal and financial advice that you receive. 10. ADDITIONAL CONSIDERATIONS Legal work An independent firm of Solicitors must act for you to complete your mortgage and, if necessary, transfer the property into the ownership of both mortgage applicants. Your Solicitor will tell you about the charge that they will make, including disbursements, for completing all necessary legal work, which will include demonstrating the adequacy of your title to the property to our Solicitors. You will be responsible for your own Solicitor's fees and disbursements. A separate firm of Solicitors or our own Legal Department will act for us in arranging this mortgage. The fee for this is included in the Completion Fee charged for this mortgage. However you will be responsible for any disbursements, such as Land Registry fees and miscellaneous search fees, incurred by our legal representatives. Before the loan can start, your Solicitor will be required by us to complete a certificate confirming that they have explained the terms of the mortgage contract to you. Valuation To allow us to establish whether your property represents suitable security for the Flexible Drawdown Lifetime Mortgage and to calculate exactly how much you may be able to borrow we will need to carry out a mortgage valuation. An independent Valuer from our panel will undertake this valuation. Although you will receive a copy of the report, it is primarily to enable us to assess the property as security for your loan. Consequently, the report will only be based on a limited inspection. As it is not detailed, there may be aspects of the property which are not relevant to us, but which will matter to you. If you would like to obtain a more detailed inspection of your property before proceeding, please ask us for details about the two other types of report you can have and the cost of these. 10

12 The initial Processing Charge, which is made up of a Valuation Fee (based on the purchase price or value of the property, whichever is greater) and a non-refundable Administration Fee (currently 125), must be paid when you apply for your Flexible Drawdown Lifetime Mortgage. Please refer to your personalised Keyfacts Illustration for the amount of the fee. Where the valuation is not instructed directly by us (our prior agreement to this is required), the Administration Fee remains payable to National Counties when your application is submitted to us. After your mortgage has started we may re-inspect the property every three years to check on its condition. The re-inspection report provided by our Valuer will be solely for our benefit and you will not see a copy of it. The cost of these re-inspections is included in the Completion Fee charged at the start of this loan. Completion fee On completion of the mortgage we will charge a completion fee (refer to your personalised Keyfacts Illustration for the amount of the fee). This fee is charged once, when the mortgage starts ( mortgage completion ), and the loan facility you request will be increased to allow for this. The fee is deducted from the initial amount sent to your legal representative at completion. Interest is payable on this fee at the prevailing rate for the mortgage, and our illustrations are calculated on this basis. Insurance We will require you to maintain adequate buildings insurance with comprehensive cover (including subsidence, heave and landslip) and index-linking of the sum insured whilst your property is mortgaged to us. We can make arrangements for you to receive a quotation for comprehensive insurance for your home, contents and possessions provided by a third party insurer. Alternatively, you may make your own arrangements in which case our interest should be noted in the buildings policy and a charge, currently 30, will be made to cover the cost of our initial review of the insurance cover you arrange. Confirmation that adequate insurance cover is in place will be required before the mortgage can start. Borrowing Reserve As mentioned earlier, your initial application will be for the amount you decide that you need between the minimum loan of 20,000 and the maximum amount available to you based on your age and the property s value. The difference between the advance initially drawn by you and the total loan facility agreed will be held in the Borrowing Reserve and released to you on request during the first ten years of the mortgage. No interest is incurred until the monies are released to you. The fixed interest rate for future payments from the Borrowing Reserve may vary and you will be notified of any change in advance. In order to draw money from the Borrowing Reserve your signed request will be required and we will provide the necessary forms. In the case of joint loans, both borrowers must sign the request. The minimum lump sum you can draw is 1,000 and for regular monthly advance releases the minimum amount is 200. We will not need to re-value your home before releasing money from the Borrowing Reserve. However, as your health and other personal circumstances can change over time, we recommend 11

13 that you take further independent financial advice before increasing your debt by drawing against the Borrowing Reserve. You will be responsible for meeting the costs of this advice. Payments from the Borrowing Reserve will be made to you by direct credit to your pre-nominated bank account, which must be held in the same name(s) as the Flexible Drawdown Lifetime Mortgage (documentary evidence of this may be required). Once we receive your request we will send you a projection of the effect of the requested payment on your outstanding mortgage debt in future before arranging for the payment to be sent to your bank account. Please allow 3-10 working days from the date that we receive your signed request for the payment from your Borrowing Reserve to reach your bank account. Whilst no notice is required for payments from the Borrowing Reserve, we reserve the right to defer payments to you for up to 30 days. After 10 years have elapsed from the date of the initial advance any remaining amount in the Borrowing Reserve will be cancelled and no further payments will be made unless an application for an additional loan, which will be on the terms and interest rate then prevailing, is approved. In the case of regular monthly advance releases, these will continue until your instructions are received to amend or cease the payments, until the Borrowing Reserve is reduced to zero, or until 10 years have elapsed from the date of the initial advance, whichever of these happens first. Additional borrowing Once the agreed loan facility has been released to you in full, or the Borrowing Reserve has been cancelled, an application can be made for an additional loan subject to our lending criteria at that time and (where you consider it appropriate) to you taking independent financial advice again. A new property valuation may also be required. Any additional borrowing that is then agreed will be on the terms and interest rate prevailing at the time of application and you will pay an application fee (which includes the cost of any revaluation required) and our legal fees and disbursements. Whilst not compulsory, we recommended that you consult an intermediary authorised by the Financial Services Authority to give advice on equity release products before applying for any additional borrowing. You will be responsible for any cost incurred as well as the cost of any separate legal representation you may require. Changes in your circumstances Once you have taken out a Flexible Drawdown Lifetime Mortgage, some changes in your circumstances could have a significant impact and, if such an event occurs, you should tell us immediately and take further independent legal and financial advice. The types of changes most likely to have such an impact are those affecting the ownership and/or the occupation of the property (e.g. a new partner living with you in the mortgaged property or a carer permanently moving into the property to look after you). Please remember that the ownership of the property cannot be changed without our prior consent whilst it is mortgaged. Any application will be considered based on your circumstances at that time. Such requests will incur additional processing, revaluation, legal and (where you consider it appropriate) financial advice fees for which you will be responsible. 11. CHARGES 12

14 The normal day to day management of your mortgage will usually be conducted free of additional charges. However, we do charge for providing some specific services and, where these apply, our current charges will apply. These charges may vary and you will be given notice of the changes. You can obtain a current copy of our Tariff of Mortgage Charges at any time, on request. Additional information: If there is any additional information that you would like to know or if you have any questions then please contact our Customer Centre. If you require advice on the suitability of this product for your circumstances we recommend that you take advice from an intermediary authorised by the Financial Services Authority to advise on equity release products Help is available from: Your independent financial adviser Your Solicitor This Guide should be read in conjunction with a personalised Keyfacts Illustration, which can be obtained from National Counties Customer Centre (open Monday to Friday, 8.30am to 5.30pm): Telephone: customer.centre@ncbs.co.uk Fax: The Flexible Drawdown Lifetime Mortgage is only available to persons of 60 years of age or over. Subject to status. Security in the form of a mortgage on your home will be taken. National Counties Building Society, Ebbisham House, 30 Church Street, Epsom, Surrey KT17 4NL Tel: Fax: customer.centre@ncbs.co.uk Website: Authorised and regulated by the Financial Services Authority FSA Register No