An Equity Protection feature provides the option to select a guaranteed minimum value of either 10% or 20% of the original property value that will be returned to your estate. In some circumstances this option will reduce the maximum amount of equity that can be released, although most equity release schemes are now offering a protected equity option where an additional amount by way of an increase to the fixed interest rate has been priced in. The increase to the interest rate is then applied to the initial loan and any further advances

Whilst not specifically a flexible feature, the way in which interest is applied to the mortgage can affect the rate at which interest rolls up. A monthly rate of interest is the most typical rate of interest advertised for Equity Release Schemes. However this is not the true rate as interest compounds monthly to produce a higher annual rate. For example a monthly rate of 6.4% which compounds to an annual rate of 6.65%. Therefore if a Lifetime Mortgage Scheme advertises an annual rate of interest of 6.55%, this product would be preferable by comparison to a monthly rate of 6.4%.

Lifetime Mortgage Schemes are designed to last for the whole of your life, and so early repayment would not normally be a consideration. If repayment is a possibility, such as when selling up to downsize, the cost of early repayment can be considerable. Currently there is only one Lifetime Mortgage Scheme available in the UK which has no early repayment charge at any time and is provided by Coventry Building Society. With most other lenders the early repayment penalty falls in to one of two penalties. The first is a defined penalty of 5% of the total loan for the first 5 or 10 years. With the other being linked to the performance of a particular gilt, based on age at time of loan offer. Any early repayment charge depends on whether the redemption yield is higher or lower when the loan is repaid, than it was on the completion date of the loan. There is no charge if it is the same or higher. If it is lower, there will be a charge.

https://consumerscomment.com/loandepot-review/