Lifetime mortgage with voluntary repayments

How does a lifetime mortgage with voluntary repayments work?

By making ad hoc interest and/or capital repayments, you could reduce the size of your loan, meaning you could have more equity available in your property to pass on when the plan comes to an end.
 
You have the choice of whether to reduce the capital or interest of your lifetime mortgage, or both. As these repayments are voluntary, you decide how much you want to pay and when you want to pay it.
 
It’s important to note, though, most plans come with an annual repayment limit. If you go over your limit, you will incur early repayment charges. Speak to an equity release adviser to find out more.

 

Things to consider

• All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home
• Equity release will reduce your estate’s value and may affect your entitlement to means-tested benefits
• A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future
• The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
• Our fixed advice fee of £1,299 is only payable on completion