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.