Lifetime Draw down by HC120917035239


									Lifetime Mortgage with Drawdown Facility
Suitability Report

It is our intention to offer you the best possible service and financial advice. As a
consequence of our recent meeting and as a matter of course I have produced this
suitability report setting out my recommendations regarding your current financial position,
aims and objectives, as you requested during our meeting on XX/XX/XXXX

I am now in a position to make my recommendations to you. This report is tailored to your
specific needs and circumstances. It should be kept with the Terms of business and Key
facts about our services document given to you on XX/XX/XXXX and your mortgage offer
when it arrives. The advice given was based on the Personal Financial Questionnaire/Fact
Find and the Lifetime Mortgage Addendum Fact Find you and I completed on XX/XX/XXXX.

Commission: We have discussed the various ways in which I am to be remunerated for the
work I have carried out. You agreed that the mortgage lender pay commission rather than
you to pay a fee.
Fee: We have discussed the various ways in which I am to be remunerated for the work I
have carried out. You agreed to pay a fee for the work carried out on your behalf.
Fee offset by Commission: We have discussed the various ways in which I am to be
remunerated for the work I have carried out. You agreed to pay a fee offset by commission
from the mortgage lender.
Fee & Commission: We have discussed the various ways in which I am to be remunerated
for the work I have carried out. You agreed that the mortgage lender pay commission and
additionally you pay a fee.

Please note that this report, along with any other supporting information, should be kept in a
safe place.

In this report I have presented to you my understanding of your current situation and your
aims and objectives, which forms the basis for my recommendations and suitability report.
You should check carefully that the information is correct and note any revisions, which
need to be made due to a change in your circumstances before making any decision to
proceed. It is important to ensure you have understood the issues and any risks involved,
please also check any assumptions I have made are correct.

The service that we provide falls into two parts: -

       a) A personal Financial Planning Service. This involves an examination of your
          needs and objectives by conducting a review of your financial position and future
          plans. This may highlight areas of financial planning where a need / shortfall

Q4-07-V3.1                                                                                  1
           exists which, when compared to your objectives, you may wish to address
           immediately or defer discussion to a later date.

       b) Research: In addressing your objectives, where a need for any type of product is
          identified, we research the market place and recommend a company that will
          provide the product best suited to your needs. When a recommendation is made,
          the specific reasons for selecting the product type and the product provider are
          clearly stated within the recommendation section below.

My understanding of your current circumstances:
You are currently married/single/separated/divorced and employed as a XXXXX with an
annual salary of £XX,XXX OR self-employed as a XXXXX with annual earnings of
approximately £XX,XXX / are retired with an annual income of £XX,XXX (both occupations
and both earnings if joint) (insert when expecting to retire if employed and how this will
affect income)

Benefits: You currently receive the following State or Local Government means tested
benefits: (provide details)
No benefits: You do not have any entitlement for State or Local Government means tested

You receive an entitlement for Local Council Tax benefit of £XX,XXX per annum because of
single occupancy / your low income. (Delete if not applicable)

You are (both) in good/average/poor health and have confirmed you do/do not smoke.

Dependants: You have XX members of your family who are financially dependant upon
No Dependants: You do not have anyone who is financially dependant upon you.

Your beneficiaries are (provide details)

You have purchased your own home, which is currently valued at £XXX,XXX. After
deducting your mortgage of £XX,XXX you have equity of £XX,XXX. Your total borrowing
commitment amounts to £XX,XXX.


You have purchased your own home, which is currently valued at £XXX,XXX. You have no
loans or mortgages secured on your property, therefore you have equity of £XX,XXX. Your
total (unsecured) borrowing commitment amounts to £XX,XXX.

You moved into your house in XXXX. You are settled both in your home and the locality and
cannot envisage moving now or in the foreseeable future.

Income Shortfall: Having conducted a thorough Fact Find and Needs Analysis we have
agreed you have an income shortfall of approximately £X,XXX per month, as your current
expenditure exceeds your income.

No Income Shortfall: Having conducted a thorough Fact Find and Needs Analysis we have
agreed you have disposable income of £X,XXX per month.

(Explain if circumstances are expected to change and how)

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If I have misinterpreted your instructions or any of the information above is inaccurate then
please contact me immediately so that a full review may be completed.

Your existing savings and investments:
You have the following savings / investment arrangements in place:

       Investment Type:
       Owner / Life Assured:
       Fund type:
       Start Date & Maturity Date:
       Early Encashment Penalty:

(Repeat for more plans / accounts)

Your existing liabilities:
You have the following existing loans:

       Loan Type:
       Outstanding Amount:
       Monthly Payment:
       Interest Rate:
       Start Date & End Date:
       Early Repayment Charge:

(Repeat for more liabilities)

Your needs and shortfalls:
We discussed all aspects of your financial situation and from the information gathered in the
Financial Questionnaires/Fact Finds, I have identified the following needs and shortfalls:-

Income Need: Extra income provision to meet expected, regular expenditure
You need extra income at this stage in your life to meet your regular expenditure.

Lump Sum Needs: Lump Sum provision to meet planned expenditure
You want to raise £XX,XXX to fund certain immediate expenditure, detailed below and
expect a further need for a lump sum / regular lump sums in the future / X years time.

Long Term Care
We discussed long-term care and you stated that you do not require advice in this area at
the present time. At our meeting I made you aware of the implication of the requirement for
capital in the event of Long Term Care in the future and the effect of releasing capital from
your property now may leave in you the situation with limited resources to fund this care in
the future. You have stated that you understand this and accept the risk. You explained to
me that you are presently in good health and not concerned about having inadequate funds

Q4-07-V3.1                                                                                 3
in the future to fund private care and therefore you declined the opportunity for advice in this
area / (insert client specific reason)

Inheritance Tax Planning
Although I can help you meet most of your needs this does not extend to advising on
inheritance tax matters. However, I feel you should be aware that, at its simplest, where the
net value of an individual’s assets exceeds the current inheritance tax nil rate band of
£325,000, inheritance tax is charged on that excess at a rate of 40%. There are some
exceptions from inheritance tax and one of the most notable is where transfers are made
between married couples and registered civil partners. Also new rules mean if a partner
dies, and does not make use of their own individual nil-rate band, when the survivor dies,
they will be able to use both their own nil-rate band and that proportion of their partners that
was unused. This would effectively give a 'double' nil-rate band of maximum £650,000 at
current rates to be applied to their estate.

Planning ahead can reduce meaningfully a future inheritance tax bill. This is a specialised
area and, if you would like your inheritance tax position appraised, I can introduce a
colleague to you who will carry out an in-depth review and make recommendations for
consideration. Alternatively you can seek advice from a solicitor or accountant who
specialises in the provision of this advice.

Your objectives and priorities:
Following our discussions, I have identified that your objectives and priorities are as follows:

Income Need: Extra income provision to meet expected, regular expenditure
You are currently finding it difficult to meet your monthly commitments and are therefore
looking to increase your income by £XX,XXX each month / year.

Lump Sum Needs: Lump Sum provision to meet planned expenditure
You currently have sufficient monthly income to support your standard of living, however
you wish to raise £XX,XXX for a number of projects that you wish to fund but without the
finances at present. The monies are required for the following:
(Example only, please amend)

       New Windows                                            £X
       Replacement Guttering                                  £X
       Repayment of credit cards                              £X
       Costs                                                  £X
       Total required now                                     £X
       New Bathroom suite next year                           £X
       Holiday to Australia in 2010                           £X

Where items identified as needs in the previous section are not to be addressed
immediately, you have agreed to look at these at a future date.

Your attitude to risk:
Cautious: You have described yourselves/yourself to me as having a cautious attitude to
risk towards Lifetime Mortgages, which means that you wish to minimise the risk of eroding
the equity within your property and you aim to retain a reasonable amount of this equity for
your future use, whilst receiving just enough capital for your immediate needs.

Q4-07-V3.1                                                                                     4
Medium: You have described yourselves/yourself to me as having a medium attitude to risk
towards Lifetime Mortgages, which means that you are prepared to accept some risk of
eroding the equity within your property for the benefit of having sufficient capital to utilise
now, whilst aiming to retain some equity.
High: You have described yourselves/yourself to me as having a high attitude to risk
towards Lifetime Mortgages, which means that you are prepared to accept the risk of faster
erosion of the equity within your property for the benefit of having as much capital as
possible now.
Speculative: You have described yourselves/yourself to me as having a speculative
attitude to risk towards Lifetime Mortgages, which means that you are prepared to accept
the risk of eroding all of the equity within your property for the benefit of having as much
capital as possible now.

Income Need: You have sufficient capital funds available immediately or at short notice
with which to meet any foreseeable contingency. However, you currently have insufficient
income to meet your anticipated regular expenditure.

Lump Sum Needs: You have confirmed your monthly income exceeds your monthly
expenditure. However, you currently have insufficient savings to meet your anticipated lump
sum expenditure.

Please note that my recommendations in this report are based on your current
circumstances. If, for instance, your expenditure were to unexpectedly increase my
recommendations may not be suitable.

It is important to note that your income may not keep up with inflation and historically utility
bills and other ongoing expenditure have risen above inflation and, therefore, your income
may not cover your expenditure in the future. By utilising the equity in your property now,
you may not have sufficient monies available to you in the future to supplement your

Possible solutions:
There are a few possible solutions that would help you achieve your objectives.

(Adviser to consider all of the areas listed below and give reasons why each was

           Apply for benefits – Due to your level of income / assets you do not qualify for
            any further benefits.
           Obtain a grant for home improvements – Due to your level of income / assets
            and the nature of the home improvements you wish to undertake you do not
            qualify for a grant.
           Use existing savings / investments – (insert client specific reason)
           Ask for assistance from relatives – They are not in a position to help you
            currently. / (insert client specific reason)
           Reduce expenditure – (insert client specific reason)
           Sell home and rent or downsize to a cheaper property – You are settled in your
            home and do not wish to move.
           Take a lodger - You are happy living on your own and would not feel
            comfortable with a lodger in your home. / (insert client specific reason)

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           Take out an Interest Only mortgage – You do not want to increase your monthly
            expenditure by paying monthly interest payments and could not afford to do so
           Home Reversion Scheme – You are aware that many people are able to release
            the greatest amount of equity from their homes with this type of scheme, but
            that these involve selling part, or all of your home to the Reversion company.
            This was discounted because you wish to retain ownership of your home.
           Lifetime Mortgage, Home Income Plan – These plans offer an income through
            releasing equity from the home and investing it in a purchased life annuity. Part
            of the income from the annuity is then used to pay the monthly interest
            payments on the mortgage, so that the interest doesn’t roll up. This was
            discounted because it would provide you with less income than the product I am
            recommending. / it would not provide you with the initial lump sum that you
           Lifetime Mortgage with no drawdown facility - These plans offer an initial lump
            sum only through releasing equity from the home and the interest is rolled-up.
            This was discounted because you wanted the availability for potentially
            releasing further capital to fund further lump sum / regular expenditure in future
            years as detailed above and therefore required a drawdown facility.

Whole of market: I have made my recommendation from the whole of market.

Taking into account your objectives, attitude to risk and affordability set out in this report, I
recommend a Lifetime Mortgage Drawdown plan as this is the most suitable product based
on your current needs and the details are as follows:-

Provider:                     (lenders name)
Borrower(s):                  (names)
Property Value:               £XXX,XXX
Initial Loan Amount:          £XX,XXX (including £X,XXX fees)
Drawdown facility:            £XX,XXX (provide details of when available)
Total Available Loan          £XX,XXX
Term:                         Until you (both) go into a residential care home or sheltered
                              accommodation, or you (both) die or earlier abandon the
Your chosen term for          XX years
illustrative purposes:
Interest Type:                fixed rate / variable rate, rolled up
Interest Rate:                X.X%

The overall cost for comparison for the above loan is X.X% APR.

You will receive a further Key Facts Illustration from the lender confirming the definitive
costs of the Lifetime Mortgage which will confirm:-

           APR
           Total payments made over the term of the mortgage
           Daily interest/Monthly interest/Annual interest
           The lender’s fees
           Other, lender specific information

Q4-07-V3.1                                                                                     6
I recommend that you apply for a Lifetime Mortgage Drawdown plan, which will provide you
with an initial lump sum of £XX,XXX /annual income of £XX,XXX. The actual initial loan is
£XX,XXX but the provider arrangement fee of £XXX has been added. You could spend the
amount released as you wish on your aims and objectives as detailed above. The maximum
advance that (Lender) will allow at this time is X% of the property value; i.e. £XX,XXX.

You can drawdown the additional sum at any time after completion. (Please provide details
of drawdown facility including maximums and minimums, timings and whether any further
fees would be payable. Also explain that the maximum amount available may increase with
the ages of the clients and whether the same interest rate applies to the drawdown, if fixed
rate, or whether a rate applicable at the time will be charged) If you take further funds in the
future using the drawdown option, the roll up of interest will be greater based on the new
loan amount.

There is no interest or monthly payment payable until you leave the property and go into
residential or sheltered accommodation or you die. For the time that the loan is outstanding,
interest builds up on a fixed/variable rate basis. Therefore the amount that is recovered from
your estate will be higher than the original amount borrowed.

In order to repay the loan and any accrued interest, the property will be sold. The amount
required will be paid to the Lender with any remaining balance being paid to your

My recommendation is in line with your attitude risk of cautious/medium/high/speculative as
outlined above because the release of £XX,XXX over XX years could significantly erode
some of the equity in your property. The projection of rolled up interest on the £XX,XXX
release (plus the fee of £XXX) after XX years is £XX,XXX.XX. Remember the term of this
lifetime mortgage could run for a longer or shorter term than XX years. It should be noted
that the term of XX years shown on the illustration is not the maximum and therefore there
may be a higher level of interest rolled up.

However, you are aware that by taking further capital in the future from the reserve amount
will increase the erosion of capital from your property and therefore reduce the amount
potentially available for your beneficiaries, thus increasing the risk involved. Please seek
advice before you consider taking further advances.

Whilst the level of income / lump sum provided is less than required you are happy that it
will meet some of your requirements. We will address the need further (detail how and when
the full need will be addressed.)

Lenders scheme and terms:
Fixed rate loan
It was felt that a fixed rate mortgage best suited your personal circumstances because this
would allow you to plan ahead and know exactly how much interest is rolling up each year.


Tracker/variable rate loan
It was felt that a tracker rate loan best suited your personal circumstances because this
would allow you to take advantage of any decrease in the (lenders name) base rate, as your
general opinion is that interest rates may fall in the near future.

Q4-07-V3.1                                                                                    7
Existing lender:
Your current (Lifetime) mortgage is with (insert current provider). The amount outstanding
as at (date) was £XXX,XXX, which includes an Early Repayment Charge of £X,XXX. I have
taken this into account when making my recommendation to you. However, this charge is
variable and therefore could be more or less than this at the time the loan is repaid. The
maximum early repayment charge, as confirmed by (existing Lender), could be £X,XXX. It
will be necessary to monitor this charge closely, as it may be necessary to amend my
recommendations or for you to amend your plans, if the charge changes. It may also affect
the timing of when you decide, in conjunction with your Solicitor, to ‘complete’ on the new
Lifetime Mortgage. The current interest rate you are paying is/which is being rolled up is
X.X% pa.

Raise additional capital: However, you wish to raise additional capital and want to ensure
that you are securing the most competitive rate for the type of loan that you need, based
upon your specific requirements.
Other reason: (insert other client specific reason)

New lender more competitive: I therefore took into account the rates on offer by your
existing lender. However, based on your current requirement for a fixed/variable/tracker
rate, (insert new lender) are offering a more competitive product based on your specific
requirements. Your existing lender’s equivalent product is X.X%, compared to a rate of
X.X% offered by (insert new lender’s name). In comparing the two mortgages I have not
only taken into account the interest rate available, but also the fees involved in setting up a
new Lifetime Mortgage and the Early Repayment Charge on your existing mortgage. I have
calculated that at an interest rate of X.X%, the amount outstanding to (existing Lender) in X
years would be £XXX,XXX and after Y years £XXX,XXX. The amount outstanding to the
new provider on the lower interest rate of X.X% would be £XXX,XXX after X years and
£XXX,XXX after Y years. Therefore after a period of Y years the benefits are clearly in
favour of the new provider.
Current lender unable to offer requirements: Your current lender is not able to offer the
loan that you require because they do not offer Lifetime Mortgage Drawdown plans or
(insert client specific reason, eg: loan amount, loan flexibility, fast completion, etc).

Recommended provider:
After thoroughly researching the market, (lender’s name) has been recommended as the
best provider of your mortgage because they provide a highly competitive rate of interest
based on the type of product selected above and your specific personal circumstances.
Other lenders may have been discounted, even though they may offer a lower rate of
interest, because the loan did not match your specific circumstances, or did not have certain
features you required such as (insert client specific features, such as higher loan amount,
time constraints, loan flexibility, low charges, etc). Details of the specific research
undertaken are held on your file.

SHIP only: Only providers that are members of Safe Home Income Plans (SHIP) have
been considered.
All providers: All providers including non-SHIP members have been considered.

           Members of SHIP agree to provide fair, simple and complete presentation of
            their plans.

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           Your legal work will always be performed by the solicitor of your choice. In all
            cases, prior to the completion of the plan the solicitor will be provided with full
            details of the benefits you will receive. The solicitor will be required to sign a
            certificate to the effect that the scheme has been explained to the client.
           The SHIP certificate will clearly state the main cost to the householder’s assets
            and estate.
           All SHIP plans carry a ‘no negative equity’ guarantee. This means that you will
            never owe more than the value of your home.

The Lifetime Mortgage that I am recommending will be repaid from your estate in the event
of your death, or must be repaid earlier if you leave your property to move into residential
care or sheltered accommodation, or on abandonment of the property.

Features and benefits:
(These are examples only, please delete or amend where applicable)
          You will retain ownership of your property
          There are no Early Repayment Charges if you sell your property to go into long
           term care.
          The interest rate is fixed / variable at X.XX% compounded annually.
          Your beneficiaries/executors have up to X months to sell your property on
           death, before the lender will take charge of the sale.
          The mortgage is portable to another property without penalty; however, if you
           move to a property of lower value you may have to repay part of the amount
           outstanding on the mortgage.
          (Lender) is a member of Safe Home Income Plans (SHIP) and therefore there is
           a “no negative equity guarantee” with this plan.

Debt consolidation: (delete if not applicable)
You are aware that by increasing the period over which a debt is to be repaid, by
consolidating it into your lifetime mortgage, you are increasing the cost of this debt overall.
This will increase the cost of your borrowing. Although you will not now pay any monthly
repayments, the period of borrowing has increased. This means that a larger amount of
interest will be charged over the term of the loan. The debt was previously unsecured, but
now it will be secured on your home. (Please add whether it would be more appropriate for
the customer to negotiate any arrangements with his creditors than to take out a regulated
mortgage contract)

Your final Key Facts Illustration will show the actual fees applicable to this lifetime
mortgage, some of which you will be able to add to the mortgage loan.

Pay fees upfront: I have recommended that the lender’s arrangement fee is paid upfront,
as this avoids additional costs being incurred over the long-term. However in the event that
the lifetime mortgage does not complete these fees are usually non-refundable.

Add fees to loan: I have recommended that the lender’s arrangement fee is added to the
loan due to the amount of savings you have available to cover these, and that your

Q4-07-V3.1                                                                                   9
preferred choice was to keep the ‘upfront’ charges to a minimum. I explained the
consequences of adding the fee to the loan, e.g. You will be charged additional interest on
this amount over the period of the lifetime mortgage.

Risk warnings:
I would like to draw your attention to the following risks that are applicable to a Lifetime
Mortgage Drawdown plan:

          Property prices are subject to fluctuations and this means that the current
           valuation of your property may not necessarily be an indication of its future
           market value.
          There are a limited number of providers that offer Lifetime Mortgages therefore
           your choice is limited.
          You will lose equity in your property.
          There is a possibility of negative equity, which means that the total amount of
           the loan would be more than the value of your property.
          This loan carries Early Repayment Charges for X years. The charge would be
           X% of the amount repaid / is guaranteed never to be greater than XX% of the
           initial advance, and is based upon the Bank of England Base Rate of, currently
           X.XX%. The charge will only be incurred if there is a fall in base rate; before you
           repay all or part of the loan, if there is a rise in the base rate there will be no
           charge. Based upon the advance the maximum penalty would be £X,XXX, plus
           a closing administration fee of £XXX (if applicable). Please see the Key Facts
           Illustration for various examples.
          The lender will sell your property if you leave it vacant for more than X months.
          Taking the Lifetime Mortgage will adversely affect your beneficiaries and in
           some cases there may not be any residual value to transfer to them as an
          The availability of further monies is not guaranteed as this is subject to a
          You may find it difficult to move in the future, having raised some capital from
           your property or to switch your Lifetime Mortgage to another provider.
          You will retain responsibility for the maintenance and insurance costs for your
          You are required to keep your property to an agreed standard.
          It is a requirement that (Lender) are named as mortgage holders of the property,
           on the buildings insurance schedule, which may need to be forwarded by your
           solicitor to (Lender) before the loan can be advanced.
          The lender may include a provision in the contract limiting any other people
           moving into your property with you.
          The real value of the income provided may fall, that is, the effects of inflation
           may mean that the purchasing power of your annual income is less in the future.
          Your State benefits will be reduced by £XXX.XX per month, due to the extra
           income / lump sum you will receive. However, I have taken this into account in
           making my recommendation to you.
          I made you aware that should XXX survive XXX then she/he may not have
           sufficient income to cover expenditure, at which point there will be less equity in
           your home to make use of. You stated that you feel you would be entitled to
           State Benefits at this point and this does not concern you.
          If you need to pay for long term care in the future then there could be less or no
           money to pay for private care by releasing equity from your property now and
           spending the funds.

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           The information given is based upon our understanding of current legislation
            and HM Revenue and Customs’ practice, both of which are subject to change.
           There are costs involved in setting up the plan. These will have to be paid even
            if you do not complete the loan. Estimated costs are as follows:


               Valuation Fee         = £XXX (includes Admin Fee – both non-refundable)
               Arrangement Fee       = £XXX (Non-refundable)
               Advice Fee            = £XXX (Paid on completion)
               Title Insurance Fee   = £XXX (Non-refundable)
               Telegraph Transfer    = £XXX
               Total                 = £X,XXX

You are also responsible for paying your own Solicitors Fee’s, which I estimate will be
approximately £XXX plus disbursements. Your solicitor will advise you on the legal aspects
of the plan and when he is satisfied that you understand the implications, he will sign the
Solicitor’s certificate.

You are aware that any costs added to the loan will be charged roll up interest.

Taxation considerations:
Whilst the funds released will be tax free, funds placed on deposit may be taxed, depending
on the tax rate of the account holder. You are both currently tax / non-tax payers. You
should open a Cash ISA/Deposit account to place any of funds you intend to hold on
deposit to receive gross interest on your emergency fund.

I also made you aware that by keeping the money released on deposit the interest rate in a
deposit account is unlikely to pay as much interest as the rolled up interest of X.XX% being
charged by Provider, hence leading to an overall erosion of your capital.

I have given you an appropriate Key Facts Illustration, which you should read carefully. If
you have any questions on this or any of the other documentation provided, please do not
hesitate to contact me.

Your Lifetime Mortgage will be subject to the lender’s terms and conditions that will be set
out in a formal mortgage offer.

You have confirmed you do/do not currently have a Will. There can be tax-planning
advantages from Will writing and this can ensure that as much as possible of your estate
goes to those intended. It is also important that revisions are made whenever significant
changes occur in your situation or intentions. I recommend that you seek advice from a
solicitor with regard to this matter.

I also recommend / note that you have / should discuss arranging a Lasting Power of
Attorney with your solicitor.

Q4-07-V3.1                                                                               11
I have strongly recommended that you inform your beneficiaries of your intention to take out
a Lifetime Mortgage.
Beneficiaries not informed: You have decided not to inform your beneficiaries on this
occasion because (insert client specific reason), but by signing the declaration confirm that
this was your decision.
Beneficiaries informed, not present: You have discussed this with your beneficiaries and
by signing the declaration confirm that they are aware of your intensions to take out this
lifetime mortgage.
Beneficiaries informed and present: You have discussed this with your beneficiaries and
they were present at our meeting.

For details of commission paid to XXXX, please refer to section X of your Key Facts


Shortly after your loan completes, XXXXXX will receive a commission amount of £X,XXX
from (insert lender), which is detailed in the Key Facts Illustration.
(Amend as necessary to reflect any fees expected)

The recommendations outlined in this report are based on my understanding of your
personal circumstances and my assessment of your needs. If I have misunderstood any
aspect of your needs please bring this to my attention as soon as possible. Please also
contact me immediately if there are any inconsistencies or errors within this report.

If you are happy with my recommendations then you need do nothing further.

In due course you will receive a lifetime mortgage offer from (Lender), please contact me
when you receive this offer so that we can go through this in detail.

I hope that you have been satisfied with the service that I am able to offer you. If you would
like to forward my details onto anyone you believe that may benefit from the service I
provide, please feel free to give them my contact details, as I would be happy to see them in
the near future.

In the meantime if you have any questions regarding any of the above mentioned
recommendations, please feel free to contact me and I will be more than happy to help.

Please note that this lifetime mortgage is regulated by the Financial Services Authority.

Yours sincerely,

Adviser Name

Q4-07-V3.1                                                                                  12
          We/I have read the above and fully understand the commitment that we are/I
           am making in respect applying for a Lifetime Mortgage.
          We/I understand the implications of our/my actions in respect of reducing any
           inheritance for our/my beneficiaries.
          We/I confirm that we/I have received and understood the Lenders
           documentation provided.
          We/I confirm receipt of the Key Facts about our Services document and product
           Key Facts Illustration (KFI).
          We/I do not wish to inform our/my beneficiaries of our/my plans to take out a
           Lifetime Mortgage as these are personal.***
          We/I will tell our/my beneficiaries and they are happy with what we are/I am
           trying to achieve and are happy to sign the declaration.***
          We/I have informed our/my beneficiaries of our/my plans to take out a Lifetime
           Mortgage, and they are happy with what we are/I am trying to achieve, but they
           will not be signing the declaration.***

*** Delete as applicable

Signatures to confirm understanding and approval





Q4-07-V3.1                                                                            13

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