Income Plans

New to the market, and yet to gain traction. Here you take a much lower initial amount, usually no more than about 10 per cent of what you could have borrowed. Then you take an income, set to a pre-determined range of years, say 10, 15, 20, or 25 years, currently fixed for life. At the end of the chosen term, the income will cease.

These plans are yet to mature but I’m sure they’ll gain in popularity over the years. They fit a completely different borrowing profile. Because the initial amount taken is quite low, and the income withdrawals are incremental, the roll-up of compound interest is slower.

Again, lenders differ so please check the details in your personal Illustration KFI document where all the details terms and conditions can be found.