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 Flexible Lifetime Mortgage or if you’ve stopped making monthly interest payments on your Optional Payment Lifetime Mortgage.
In any 12 month period, starting on completion of your lifetime mortgage (and on each anniversary) you can:
- Repay up to 10% of the total amount you’ve borrowed, this includes the initial cash sum plus any additional borrowing.
- Make up to four repayments.
- Make payments of at least £500.
You can request to make an Optional Partial Repayment using our online form. 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 using our online form. 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 online 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.
- Email address - we need your email address to send you your illustration. If this is a joint account you only need to give us one email address.
- 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 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. If you’re using gifted funds, contact our customer service team on 03330 048 444, who will be able to help you with your request.
The simplest way to make a partial repayment is by completing our online request form, we’ll then send you the information you need to make this payment. Please don’t send us any payment without first submitting our online request form as we may have to return it to you. You can make a partial repayment in four easy steps:
Step 1: Complete the online form which will take about five minutes.
Step 2: When you’ve submitted the request we’ll review the information you’ve provided. If we have everything we need we’ll email your illustration. This may take up to two working days. If we need further information, we’ll call you back to discuss your request.
Step 3: Once you’ve reviewed this information and wish to proceed with the payment, you can make your payment following the instructions set out in the email.
Step 4: When we receive your payment, we’ll credit your account and send you a letter to confirm receipt.
When making partial repayments there are a few things to consider, and you may want to go back to your financial adviser for guidance.
In any 12 month period, starting on the completion date of your mortgage, you can:
- repay up to 10% of the total amount you’ve borrowed, this includes the initial cash sum plus any additional borrowing you have received, without incurring an Early Repayment Charge
- make up to four repayments in each 12 month period
- make minimum payments of at least £500
Partial repayments in excess of the annual 10% Optional Partial Repayment feature can be made 12 months after your lifetime mortgage completes. This will be treated in the same way as an Optional Partial Repayment, however you may have to pay an Early Repayment Charge. If this is the case the information we send you will show this.
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.