Pure Retirement Classic Super Lite
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Pure Retirement Classic Super Lite Review
Classic Super Lite Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 2.76% | 2.9% |
Scheme Incentives
- Free Valuation
- Free Application
Scheme Offers
- 10%pa Partial Repayment Option
- Fixed Early Repayment Charges
- Downsizing Repayment Charge Exemption
- Fees-Free Options*
I think you’ll agree with me when I say:
It’s REALLY hard to choose the best equity release scheme with all the choices available.
Or is it?
Is the Pure Retirement Classic Super Lite, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.
As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.
- We'll provide detailed information about the Classic Super Lite scheme.
- We’ll help you assess whether this plan could be right for you and your family.
- We'll explain how low the current interest rates are for the Classic Super Lite product.
What’s Equity Release?
An equity release mortgage (see What’s Equity Release?) is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care.
We’ve summed up the most important information about the topic in this quick video.
Who Are Pure Retirement?
Scheme Background
Pure Retirement, a lifetime mortgage lender and a leader in the retirement lending market for homeowners aged 55+.
Formed in 2014, Pure Retirements’ wealth of experience helped form its equity release plans both in the higher maximum loan part of the market and the lower competitive interest rate end.
Pure Retirement also aims to minimize set-up costs using cashback & fee waivers on their drawdown and lump sum lifetime mortgage plans. This makes the Pure Retirement Classic range of plans one of the lowest interest rate and application cost-to-market equity release schemes available.
Pure Retirement Classic Range
The Pure Retirement Classic range of drawdown lifetime mortgage plans are funded by Rothesay Life – a leading UK life insurer. There are many versions of the Classic Drawdown plans – the Lite and Midi. The plans only differ in the size of the loans they will provide at certain ages and the consequent interest rate that Pure Retirement applies.
Classic Drawdown Equity Release Plans
Their Classic Drawdown Equity Release Plans provide an initial capital lump sum, which aims to offer a more competitive interest rate than its industry colleagues. Combining balance control measures with their flexible 10% partial repayment facility, along with competitive lifetime mortgage interest rate, Pure Retirement aims to offer this drawdown equity release scheme to a wider generic audience of retirees.
Eligibility & Requirements
Only a small number of specialised equity release intermediaries, including Equity Release Supermarket, offer the Pure Retirement Classic Drawdown Super Lite Plan. They’re designed for those who want the freedom and access to funds they need now and in retirement, whenever the need arises.
Minimum Property Valuation
The Pure Retirement Classic Super Lite Plan has a minimum property value of £125,000 and a maximum UK property value of £2 million.
Property Location Requirements
The property must be the primary residence and must be located in England, Wales, Scotland (Mainland) or the Isle of Wight. When determining the value of flats and maisonettes, Pure Retirement will only consider 85 percent of the valuation.
Pure Retirement will take freehold and leasehold properties in the United Kingdom, as well as leasehold properties in England and Wales. Pure’s leasehold standards are stated as a minimum of 90 years.
Single vs Joint
On a single & joint life basis, the Pure Retirement Classic Drawdown Super Lite Plan is offered for up to two applicants. The minimum age for entry is 55 years old, with a maximum age of 84 years old (of the youngest).
Minimum Release
The Classic Super Lite plan has a low minimum borrowing of £10000 and a maximum release of £1 million.
Scheme Features
Pure’s Classic Drawdown Super Lite Lifetime Mortgage is designed to provide an initial cash lump amount, as well as future access to a cash reserve facility. The cash reserve can be customized to meet the needs of the homeowner. The minimum amount of cash that can be withdrawn from the reserve facility is £2000, and there are no additional fees for doing so.
A Downsizing Early Repayment Charge Exemption is included with the Classic Drawdown equity release schemes. If the homeowner decides to sell after the plan has been in existence for 5 years, this provision kicks in. If the home they want to move to doesn’t fit Pure Retirement’s financing conditions, they can repay the loan with no penalties.
The industry-recognized ‘No Negative Equity Guarantee’ is included in all variants of the Pure Retirement Classic plans.
Valuation Features
The Classic Drawdown series of drawdown plans is presently offering a generous free unlimited valuation.
Early Repayment Feature
On their Classic Super Lite product, Pure offers a set early repayment charging (ERC) arrangement. These ERCs begin at 10% and gradually decrease by 1% per year until year 10. After that, the ERC is kept at 1% until year 15, after which no penalty is imposed.
Equity Release Council Status
Because Pure Retirement is a member of the Equity Release Council, any beneficiaries will not be liable for any debts that exceed the property’s final valuation.
Joint Application Features
On a single & joint life basis, the Pure Retirement Classic Drawdown Super Lite Plan is offered for up to two applicants. The minimum age for entry is 55 years old, with a maximum age of 84 years old (of the youngest).
Scheme Options
Despite the fact that the Pure Classic Drawdown plan is effectively a roll-up lifetime mortgage, Pure has added a 10% Voluntary Payment Option. This permits the homeowner to make ad hoc payments of up to 10% of the original loan amount each year without incurring any penalties. The minimum amount that can be refunded is £50, and you can make up to 12 payments per year. As a result, this can be handled as an interest-only loan with no evidence of income required.
This can help manage the plan’s future balance by allowing it to be managed on an interest-only, capital-and-repayment, or ad-hoc basis if the need arises. This is vital for those who want to ensure that their beneficiaries have some influence over their inheritance.`
Repayment Options
A 10% Voluntary Payment Option has been introduced by Pure. This permits the homeowner to make ad hoc payments of up to 10% of the original loan amount each year without incurring any penalties. The minimum amount that can be refunded is £50, and you can make up to 12 payments per year. As a result, this can be handled as an interest-only loan with no evidence of income required.
Inheritance Protection
The Guaranteed Inheritance Feature is another inheritance protection feature offered by the Pure Retirement Classic Super Lite. Pure Retirement will automatically secure a percentage of the future sale value of the house based on the amount initially withdrawn at no additional cost to the homeowner. As additional funds are drawn down, this will be updated.
Application Fees
On the Classic Drawdown range of drawdown plans, there is now a generous free unlimited valuation, allowing fee-free application.
Cashback Options
Pure Retirement also uses cashback and fee waivers on their drawdown and lump sum lifetime mortgage plans to reduce set-up costs. As a result, the Pure Retirement Classic plans have some of the lowest interest rates and application costs-to-market equity release schemes on the market.
Footnotes
*With the Pure Classic Super Lite plan, you can choose whether or not to pay the application cost. The interest rate will rise as a result of choosing the fee-free agreement. The rate quoted is the fees-free option.
**If the loan is repaid within 3 years of death or long-term care of the spouse, the 3-year early repayment charge exemption applies to joint life applications.
Pure Retirement's Other Equity Release Schemes
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