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Lifetime mortgage with voluntary repayments

Reduce the size of your lifetime mortgage by making voluntary ad-hoc repayments

What is a lifetime mortgage with voluntary repayments?

With a lifetime mortgage, you can make voluntary, ad hoc capital and/or interest repayments to help manage the size of the loan (subject to criteria).

  • A lifetime mortgage is a loan secured against your home which allows you to unlock some of the tax-free cash from your home, while retaining full ownership

  • You can repay some of the interest and/or capital to reduce the size of the loan (subject to criteria)

  • You decide when you want to make the repayments and all repayments are voluntary

  • You could reduce the size of your loan, potentially saving thousands over the course of your plan

  • You can spend the money you release in a number of ways

Am I eligible for a lifetime mortgage with voluntary repayments?

To qualify for a lifetime mortgage, you must:

  • Be aged 55 or over
  • Own your own home with a property value of at least £70,000

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

Ready to see how much you could release?

If you’ve decided that a lifetime mortgage might be right for you, you can see how much tax-free cash you could release from your home by using our free online calculator.

Not sure which product is right for you?

Our handy mortgage finder helps you understand your later life mortgage options, with all the information you need to help decide on your next steps.

Page last updated: Monday 10 July 2023