What if I have money available and want to repay part of my lifetime mortgage?
Making repayments will reduce the amount you owe and will reduce the total amount of interest charged over the duration of the lifetime mortgage.
Our Optional Partial Repayment feature allows you to reduce the amount you owe by making partial repayments without paying any Early Repayment Charge.
Optional Partial Repayments
Once we receive your repayment we will credit your account and send you a letter to confirm we have received the repayment and the effect it has on your lifetime mortgage.
There's no obligation on you to make such repayments but should you wish to, the following will apply:
- In any 12 month period starting on the completion of your lifetime mortgage and thereafter on each anniversary of the completion, you can repay up to 10% of the total amount(s) you have borrowed, which includes the cash lump sum, plus any additional borrowing you have received, for example a drawdown. We do not include any interest accrued in this calculation.
- You can make up to four Optional Partial Repayments in any 12 month period starting on the completion of your lifetime mortgage and thereafter on each anniversary of the completion, subject to a minimum of £500 each.
- You should contact us before you make any Optional Partial Repayments so that we can confirm the amount you can repay and when. If we receive a repayment without having discussed it with you first, we may have to return this to you.
- When you make an Optional Partial Repayment it will be applied to your lifetime mortgage on the day we received the cleared funds and the amount on which we charge interest will reduce accordingly.
- Where you have received additional borrowing, any Optional Partial Repayment will be allocated between each loan you have borrowed in proportion to the amount owed (including accrued interest). Any partial repayment you make to us will be shown on your annual statement.
Partial repayments in excess of the Optional Partial Repayment limits 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.