Redeeming your Lifetime mortgage

As you know, you are not required to repay your Lifetime mortgage during your lifetime, unless the last surviving Lifetime mortgage holder moves into long-term care. However, you may want to pay it off early because you are looking to sell your property or if you are remortgaging to get a better deal elsewhere. Alternatively you may have a lump sum available and want to pay off your Lifetime mortgage so that you can include your home in your will.

In this section you will find information to make the process of redeeming your Lifetime mortgage as smooth as possible.

What do I need to do to pay off my mortgage?

If you want to pay off your Lifetime mortgage early, you need to contact us to request a redemption statement. This statement will tell you how much you currently owe on your Lifetime mortgage as well as showing you any fees payable.

If you are selling your home you need to ensure that the sales proceeds are sufficient to pay off the Lifetime mortgage plus the rolled up interest. If the sale price of your property is insufficient to cover the amount you owe on your Lifetime mortgage, then you are responsible for covering this 'sales shortfall' from other funds.

What fees might I have to pay?

When you pay off your Lifetime mortgage you may have to pay a redemption fee, which covers the maintenance and general administration of your Lifetime mortgage during its term. This fee is non- refundable and is added to the final amount that you owe us.

You may have an Early Repayment Charge (ERC) on your Lifetime mortgage. This is usually a percentage of the amount being repaid and will be added to the final amount that you owe us.

You can find details of any fees payable on your original Lifetime mortgage offer. If you no longer have this document, you can contact us to find out more.

"Great news! We are currently waiving all Early Repayment Charges until further notice." Find out how you can benefit from this
What if my property is worth less than the Lifetime mortgage?

If you are in negative equity, you will still be legally responsible for the full amount of the Lifetime mortgage that is outstanding. You should contact us before you proceed with any sale if this is the case, so that we can discuss options with you and let you know how we will manage a sales shortfall in this instance.

Improve the likelihood of paying off your Lifetime mortgage in the future

With property prices falling or remaining depressed, you could find that your property is worth less in the future than you might expect. However you can reduce the amount you owe on your Lifetime mortgage by making a capital repayment. This will also reduce the amount of interest which rolls up on your Lifetime mortgage, meaning you could leave a greater amount as an inheritance. To find out more about making a capital repayment, please call us.