Image 1 shows the address of your home. This is the property your lifetime mortgage is secured against. It also shows your account number.

The “Amount Borrowed” is the total amount you have taken from your lifetime mortgage.
This includes:

• The original amount released
• Any further lending taken out against your property including any Drawdowns and / or Further Advances

The “Account Balance” shows:

• The amount borrowed
• Plus any interest added so far
• Minus any payments we have received and applied to your account

Interest is worked out daily, but it is only added once a month. Because of this, the balance shown will not include interest from the final month of the year. That interest is added on the first day of the anniversary of your lifetime mortgage.

Image 2 shows an estimate of the total cost to repay your lifetime mortgage in full on the statement date. 

This amount will usually be higher than the “Account Balance”. This is because it includes interest for the most recent month, which has not yet been added to your account balance. For this reason, the balance used in the repayment estimate will be different from the “Account Balance” shown elsewhere.

Image 3 shows a list of activity on your account for the period shown.
You will see:

• “Amounts added to the balance of the loan” 
  • This includes interest added and any extra money released, usually via a drawdown or further advance
• “Amounts reducing the loan” 
  • This shows any payments you have made

Payments that have not yet been applied to your account will not appear on the statement.
Once a payment is applied, it is always backdated to the date we received the money. Your interest is then adjusted accordingly.

The amount of interest added each month can change. This is because months have different numbers of days and the interest is compounded. If no payments are made, the total interest will grow over time.

Compound interest is interest charged on top of interest, if you would like help understanding compound interest, please speak to your financial adviser.

The “Closing balance” does not include interest for the final month of the year.
That interest is added the day after the statement is produced.

Image 4 shows any charges added to your lifetime mortgage that incur interest. If you do not recognise a charge, please contact our Customer Support Team by submitting a query at the end of this page.

This section also shows:

• The total payments you have made in the stated period
• The total interest added to your lifetime mortgage during the same period