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Lets Get Started: Pure Retirement Equity Release In A Nutshell
Pure Retirement is a Leeds-based mortgage provider, exclusively providing equity release plans to the over 55 homeowner market.
They’ve won the Equity Release Awards for the past three years consecutively which as an accreditation to their advisor support, and bespoke equity release plans that are aligned with customer needs rather than based on returns for shareholders.
Pure Retirement is a lesser-known brand with consumers. The first-time people hear of Pure Retirement equity release plans is through their advisor. This is done on purpose to ensure their customers are only taking out an equity release plan after they’ve received professional advice.
It’s a strategic approach that lets them ensure only fully informed customers are applying, and they get to keep their overheads down by avoiding advertising fees.
That then makes Pure Retirement equity release plans more affordable to you. That’s the idea that’s good in theory, but in practice, how well does Pure Retirement equity release plans work?
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A Comprehensive Deep Dive Into Pure Retirement Equity Release Plans
To save you the time and hassle from searching through various Pure Retirement equity release reviews, we’ve compiled all the information you need to know about their various plans here.
Pure Retirement has two equity release plans for customers to choose from: the Pure Heritage Plan or the Pure Sovereign Plan.
About the Pure Heritage Plan
Pure Heritage is suitable for homeowners aged 55 and over with a property valued at £70,000 minimum, or in the case of ex-council homes, the minimum valuation is £100,000.
Using the drawdown facility, the maximum upper borrowing limit is £600,000 for homes in England or £250,000 for homes in Scotland or Wales. Pure Retirement Equity Release plans don’t cover Northern Ireland.
The loan to values (LTVs) they offer range from 19% up to 52.5%. As with all equity release providers, the older you are at the time of your application, the higher the LTV they’ll apply. The 52.5% is for those over the age of 85 applying for a Pure Heritage plan. With this, the minimum first advance is £10,000 with a minimum of £5,000 left as a reserve for the drawdown facility.
They do allow up to six partial repayments each year with a minimum £500 per payment, but that can’t exceed 10% of your total advance in any year. Should you exceed the maximum repayable each year, there is an early repayment charge that can be up 25%. However, should you need to repay the loan in full because of going into long-term care, the early repayment charges are waived.
There is also an ERC free period that kicks in once a person on a joint plan passes, provided the entirety of the loan is repaid within three years of one policyholder passing.
The Pure Sovereign Plans
Pure Sovereign plans from Pure Retirement are flexibility rich. With these plans, there are enhanced features for later life borrowing adding in portability, ERC free repayments for when customers move into long-term care, and there’s downsizing protection too so even if you don’t need to move into long-term care or assisted living, but would benefit from downsizing from a house to a bungalow, there’s protection here letting you repay your home loan free from early repayment charges.
With many equity release providers, porting an equity release plan to a new property is a complicated process. What Pure Retirement has done with the Sovereign range is increased the types of properties suitable for porting that wouldn’t usually be suitable with standard porting methods, and the only requirement is that you’ve had your plan in place for five years. After that, you can move to another more suitable type of property that’s of equal value or use the downsizing protection element to repay the loan in full free from early repayment charges.
In terms of eligible property types, the minimum valuation is £70,000, and that includes ex-council properties in addition to flats, maisonettes as well as flat-roof properties and the very rare properties with roofs that have privately owned solar panels, which aren’t popular among most equity release providers.
Overall, the Sovereign range of equity release plans from Pure Retirement opens up equity release for a number of homeowners who’d be suitable for equity release, but lack the type of property general plan providers accept and they don’t penalise your LTV based on the type of property either.
Among the Sovereign plans, there are options to release a cash lump sum or use a drawdown facility. There are four types of drawdown options, each suitable for various amounts of further borrowing suited to your needs.
You can choose to take your cash as a one-time lump sum or use a drawdown facility that's capped at either 1x or 1.5x your initial advance or capped at your maximum LTV. By putting a cap on future borrowing, you're able to take advantage of equity release while also restricting the amount of potential interest your loan could accrue over the term of your lifetime mortgage.
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No Negative Guarantee On All Plans
As full-fledged members of the Equity Release Council, all Pure Retirement equity release plans benefit from the mandatory no negative guarantee the Equity Release Council insist on for responsible lending in later life borrowing.
No matter how much you borrow, your home will always cover the cost of borrowing. Beneficiaries of your estate will not inherit any debts should your home need to be sold for less than the loan amount repayable.
Guaranteed to be Suitable Before You Apply
Pure Retirement only works with a select panel of expert advisors. You cannot approach them directly to apply for an equity release plan you think you may be suitable for.
You need to be deemed suitable by an equity release expert advisor before an application can be put forward. Even then, your advisor and Pure Retirement advisor will continue to advise on the different products available on both the Heritage and Sovereign plans to identify the right one that fits your borrowing needs, and with the flexibility you want to have, such as ERC free periods, downsizing protection, ability to port your plan to a new property and work with you to integrate planning for future possible scenarios including what would happen in the event of needing to move into long-term care facilities.
One of the advantages of Pure Retirement being exclusively focused on equity release instead of a variety of homeowner loans is that they’re better equipped to identify customer needs later in life, discuss those with you and get you onto the most appropriate plan with safeguards integrated into your policy.
How Much Does it Cost?
Despite searching far and wide, there is no Pure Retirement equity release calculator that’ll give you an exact cost of borrowing based on the number of years the plan is active.
What there are though are fixed fees and contribution-based allowances that make the equity release plans from Pure Retirement more affordable.
The only fees payable are the arrangement fee, which at the time of writing (July 2019) costs £895. There is no property valuation fee payable as Pure Retirement will cover this as it’s for their use only so that they can calculate the maximum they can lend to you based on the current market value of your home. In addition to your arrangement fees, you’ll also be responsible for paying your own legal fees and any advice fees from any advisor you choose.
Depending on the plan you choose, there are cashback options available on occasion as well as contribution fee assistance to contribute towards your legal fees.
Your equity release adviser will be able to provide more details on the contributions available from Pure Retirement for their Equity Release plans, provided you are suitable for any of their products.
Please note that the Pure Retirement logo is a trademark of Pure Retirement Ltd, to which we have no direct affiliation. The equity release firms we work with provide quotes from many providers.
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