Making repayments on your lifetime mortgage

Unless you have one of our Payment Term or Interest Reward lifetime mortgages, it’s not a requirement for you to make repayments on your more2life lifetime mortgage, as the loan, plus roll-up interest, is usually repaid when the plan comes to an end.

However, you do have the option to make voluntary payments if you wish. Making repayments can help to reduce your total cost of borrowing, which could allow you to pass on a greater inheritance to your beneficiaries.

If you have a more2life lifetime mortgage and want to make voluntary repayments, you’re in control of how much and how often you pay, with the minimum repayment being £50, subject to criteria. This can be done through making either ad-hoc or regular repayments.

Things to consider

Alongside the benefits of equity release, we also want you to be aware of what’s important to consider before making a decision.

  1. Lifetime mortgages and Payment Term lifetime mortgages are loans secured against your home and are subject to compound interest, meaning the amount you owe can grow quickly
  2. There’s a period of mandatory payments with a Flexi Payment Term Lifetime Mortgage, and your home may be repossessed if you don't keep up with these payments
  3. If you miss up to the value of three months' payments on your Interest Reward lifetime mortgage, some or all of the interest rate discount will be removed
  4. Equity release may leave you with limited or no property equity remaining and will reduce your financial options in the future
  5. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  6. These are long-term financial products and are not designed to be repaid early. If you do, early repayment charges may apply

Set up a standing order

By setting up a standing order you can make regular repayments without the fuss. To set up a standing order, please let us know by emailing [email protected] or calling 03454 150 150 with your account reference number and name.

If you use online banking, your bank will be able to set up your standing order online without needing to be sent any paperwork from yourself. If you don’t use online banking, we’ll be in touch to first confirm your identity and arrange for you to receive a standing order mandate for you to fill out and send to your bank.

Set up a standing order

Make an ad-hoc repayment

If you wish to make a one-off repayment without setting up a standing order, you can do so by emailing a member of our team on [email protected] or calling 03454 150 150 and referencing your account number and name.

Please note that before we can accept a one-off repayment from yourself, we’ll first need to confirm your identity over the phone.

Make a repayment

 

Make a repayment on behalf of someone else

Only someone with a Lasting Power of Attorney or a signed letter of authority can make a repayment or set up a standing order on behalf of someone else. And we’ll also need to confirm their identity beforehand.

If you wish to make a repayment on behalf of someone else, please email [email protected] or call 03454 150 150 with proof of Lasting Power of Attorney or a Letter of Authority, and certified identification. A member of our customer service team will then be in touch.

Make a repayment on behalf of someone

Will I be charged for making repayments?

You can usually only repay a portion of the original release amount every year without incurring an early repayment charge (ERC). How much you can repay ERC-free depends on your plan, but after your plan’s early repayment charge period ends, you can repay as much as you like. Your lifetime mortgage paperwork will tell you how long your ERC period lasts.

There are also other circumstances where you have the option to repay your lifetime mortgage in full without incurring an ERC. For example, with our downsizing protection feature, if you move home at least five years after taking your plan and your new property doesn’t meet our lending criteria, you can repay your loan in full without ERCs. 

Alternatively, in joint cases, in the three years after the death or admission into long-term care of the first partner, our early repayment exemption feature allows the mortgage to be repaid in full without an early repayment charge.

 

Still have questions?

If you still have questions, we'll be more than happy to help. Please call 03454 150 150 to speak to our customer support team.

Get in touch
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