Repaying your lifetime mortgage in full

Depending on your circumstances there are other options you may want to consider before repaying your lifetime mortgage in full.

Moving home

If you're considering moving, you may be able to take your lifetime mortgage with you. This is known as porting. If the home you're buying is worth less than the one you're selling, you may need to repay part of your lifetime mortgage.

You must contact us if you are considering moving home. We will explain the process and will need to check that your new home is eligible for a lifetime mortgage. If not, and you have had your lifetime mortgage for 5 years, you can repay in full without any Early Repayment Changes.

Borrowing more money

If you want to borrow more money and do not have a Drawdown Facility you may be eligible for a Further Advance. This only applies if you've held your lifetime mortgage for over 12 months.

Any further borrowing must be on the same basis as your existing lifetime mortgage. The interest rate may be different from your initial loan. It will depend on interest rates available at the time you request a Further Advance.

You’ll need to go back to your financial adviser to apply for a Further Advance.

If you'd like to discuss these options further, please call us on 03330 048 444 Monday to Friday, 8.30am to 5.30pm. We may record and monitor calls. Or, you can email us at customerservices@landghomefinance.com  If you’re contacting us by email don't send any personal, financial or banking information. Email is not a secure method of communication.

To request a redemption statement online please have the following information ready:

• Account number – to identify your account we need your account number. This is on your Offer of Loan document or your annual statement.
• Email address – we need your email address to send your redemption statement to. If you have a joint account you only need to give us one email address.
• Details of your initial loan or most recent drawdown – this is to check that you're the person who took out the loan or have authority to act on their behalf. The information is on your Offer of Loan document or most recent annual statement.
• Authority to act on the customer’s behalf – we need to be sure that we're dealing with you, or someone who has the authority to act on your behalf. If you're not the account holder and we have your authority details, you can complete the online request form. If we don’t have your authority details, please call our customer service team. You can email us at *customerservices@landghomefinance.com or call our customer service team on 03330 048 444 Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.
• Source of funds – we need to be sure that the money we're receiving is from a legitimate source. If you're sending us the money directly, rather than through a solicitor, we need information on where this money has come from. We'll need this before you make the repayment. You can email us at *customerservices@landghomefinance.com or call our customer service team on 03330 048 444 Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.
• Reason for early repayment – to make sure that we provide you with the correct information we need to know why you're making a repayment. If we need any further details, we'll contact you.

*If you’re contacting us by email don't send any personal, financial or banking information. Email is not a secure method of communication.

The simplest way to repay your lifetime mortgage is to request a redemption statement using our online form. You can repay your lifetime mortgage in four easy steps.

Step 1: Contact us. Complete the online request form. This should take about 5 minutes. 

When you’ve submitted the request, we’ll review the information you’ve provided. This may take up to two working days. If we need further details, we’ll call you back to discuss your request. When we have everything we need, we’ll calculate the amount you need to repay. This amount is only valid on the day we produce and email your redemption statement.

Step 2: Provide proof of funds. We’re regulated by the Financial Conduct Authority and need to know where the money you are using to make the repayment is coming from. We’ll ask you for documents like bank or pension statements, or letters confirming your inheritance or divorce settlement. Once we’ve accepted the evidence, you’ll then need to phone us to confirm when you’ll make the repayment.

Step 3: Repayment. If you want to make the repayment, the redemption statement will have instructions on what to do next. Remember, the redemption statement is only valid for the day that it's produced. If you don’t repay on that day, you'll need to call us for a new redemption statement on the day that you intend to repay.

Step 4: Confirmation. When we receive your payment, we’ll credit your account, release the charge on your property and send you a completion statement.

The Early Repayment Charge is calculated to recover costs of setting up a lifetime mortgage. This includes transaction costs for reinvesting the money, or due to changes in long-term interest rates.

You’ll never have to pay an Early Repayment Charge of more than the amount shown in your Offer of Loan documents. There is also Closing Administration Fee when the lifetime mortgage is repaid in full.

Subject to your Offer of Loan, in the following circumstances you will not pay an Early Repayment Charge.

In cases of bereavement or a move into long term care

• If you, or both of you (where there is a joint account) have died or moved into long term care.
• If you have a joint account and one of you has died or moved into long term care and the other repays within 3 years.

When you are moving home

• If you transfer your lifetime mortgage to a new property but need to repay part of your loan.    
• If it is five years since you took out your lifetime mortgage and we are not able to transfer it to your new property.
• If it is five years since you took out your lifetime mortgage and you are selling your home to move into sheltered accommodation.

When you are choosing to make a repayment

• If you repay after you (or, if joint borrowers, the youngest of you) reach the age shown in your Offer of Loan.
• If you have variable Early Repayment Charges and the Index at the time you repay is higher than or equal to the benchmark rate shown in your Offer of Loan.
• If you are making an Optional Partial Repayment within the permitted limits.