Lifetime mortgage with voluntary repayments

What is a lifetime mortgage with voluntary repayments?

• A lifetime mortgage, the most popular type of equity release, 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

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’ll have more to pass on as an inheritance when your plan ends.
 
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

• You have to receive equity release advice before releasing tax-free cash from your home - please read all our information and make sure it’s right for you
• Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits
• All of our plans meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s value