Lifetime Mortgage Loans

A Lifetime Mortgage Loan (PIV) is a medium- to long-term financing arrangement granted against a mortgage registered on the applicant’s home. The amount disbursed is repaid at maturity by the heirs following the borrower’s death or upon the occurrence of other circumstances expressly provided for by the applicable legislation.  

Without prejudice to the right to make partial or full early repayments, the loan is repaid in a single payment and becomes due upon the death of the financed party; in the case of joint borrowers, the relevant event is the death of the longest-surviving borrower.  

The product supports two different offering options:  

• PIV with annual capitalisation: the loan is disbursed as a lump sum and provides for the annual capitalisation of interest and expenses, with repayment of the entire accrued amount at maturity. This option allows the applicant to obtain liquidity without any periodic repayment obligation.  

• PIV with annual payment of interest and expenses: in this case too, the loan is disbursed as a lump sum; however, annual instalments cover interest and expenses only, while the principal is repaid in full at maturity.