After taking out your Lifetime mortgage, your circumstances may change and you may be in a position to repay some of your outstanding balance. Making a capital repayment will reduce the amount of your Lifetime mortgage, so any future interest charges will be calculated on a lower overall balance. This could significantly reduce the amount of interest that 'rolls up' over the life of your Lifetime mortgage meaning you could leave a greater amount as an inheritance.
Repayments and Early Repayment Charges
You can pay repay a capital amount on your mortgage at any time, though please be aware that if you pay this in the first 5 years of your loan you will be subject to an Early Repayment Charge (ERC). This equates to 5% of the existing balance in years 1 and 2 of the mortgage, 4% of the existing balance in years 3 and 4 of the mortgage and 3% of the existing balance in year 5 of the mortgage.
To make a repayment or to find out more, please contact us.