Optional Partial Repayments
Our Optional Partial Repayment feature lets you reduce the amount you owe by making repayments without paying any Early Repayment Charge.
You can choose to make an Optional Partial Repayment at any time if you've got our Interest Roll Up Lifetime Mortgage (previously Flexible Lifetime Mortgage) or if you’ve stopped making monthly interest payments on your Optional Payment Lifetime Mortgage.
Our Optional Partial Repayment feature allows you each year to repay up to 10% of the total amount borrowed (including additional borrowing). However, an Early Repayment Charge will apply when making repayments above this limit.
Additional information on Optional Partial Repayments can be found in your Offer of Loan and All You Need to Know documents.
You can request to make an Optional Partial Repayment by calling our Customer Service team on 0333 004 8444. Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.
We’ll send you the information you need to make this payment and let you know the effect the payment will have on your lifetime mortgage.
When you've had your lifetime mortgage for 12 months, you may choose to make a payment in excess of the Optional Partial Repayment annual limit. This is known as a partial repayment. Making a partial repayment will reduce the amount you owe, but could mean that you need to pay an Early Repayment Charge.
You can request to make a partial repayment by calling our Customer Service team on 0333 004 8444. Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.
We’ll send you the information you need to make this payment and let you know the effect the payment will have on your lifetime mortgage and any Early Repayment Charge that applies.
To request a partial repayment please have the following information ready:
- Account number - to identify your account we need your account number. This can be found on your Offer of Loan document or your annual statement.
- Details of your initial loan or most recent drawdown - we'll ask for information about your account to check that you're the person who took out the loan or have authority to act on their behalf. The information we ask for is on your most recent annual statement, so you may want to have this available before completing the form.
- Source of funds - We have a responsibility to ensure that the money we are receiving is from a legitimate source. We may ask you to provide evidence of where the money we are receiving has come from.
- When making partial repayments you may want to go back to your financial adviser for guidance.
- Additional information on Optional Partial Repayments can be found in your ‘Offer of Loan’ and ‘All You Need to Know’ documents.
- If you want to fully repay your lifetime mortgage, you can find more information on our repayments page.
- To make a repayment you must be either an account holder or the attorney, where a Power of Attorney has been registered with us. All payments must be from the account holders bank account.
If you choose to repay more than the Optional Partial Repayment feature allows, you may have to pay an Early Repayment Charge. This is calculated to recover costs that are incurred when setting up a lifetime mortgage. The costs include transactions costs incurred when re-investing the money, or due to changes in long term interest rates.
When an Early Repayment Charge is applicable, this will be shown on your illustration.