Where this fits
Bring your plan's early repayment terms when you speak to us.
Mike Chan
Mortgage Adviser
Yes. Repaying in full may carry an early repayment charge, and partial repayments are allowed without penalty on every plan meeting Equity Release Council standards since March 2022.
Since 28 March 2022 every lifetime mortgage meeting Council standards must allow penalty-free partial repayments. How much you can repay in a year varies between lenders, so ask for the figure on the plan you are being offered.
Choosing not to make them carries no penalty and no risk of repossession. Making them reduces the balance that interest compounds on.
On a lifetime mortgage, choosing not to make partial repayments carries no penalty and no risk of repossession.
The lender priced a fixed rate expecting the loan to run for a long time and funded it accordingly. Repaying early leaves it holding funding it no longer needs.
Sometimes, and it depends on the charge on your existing plan and what is available. Compare the charge with the saving from the new rate before you decide.
The loan is repaid from the proceeds. Where you are moving to another suitable property you may be able to take the mortgage with you instead, subject to the lender's criteria.
Yes. Interest is charged on the outstanding balance, so reducing the balance reduces everything that compounds on top of it afterwards.
Bring your plan's early repayment terms when you speak to us.
Mortgage Adviser
Your first call is with an Account Manager and is at no cost to you. Tell us what is on your mind: a pension you have lost track of, a fixed rate ending, a will you keep meaning to write.