Whilst the name of the most popular equity release product is a Lifetime Mortgage, this doesn’t mean that you don’t have options to pay it back. Despite being designed to last for your entire lifetime, there are options to pay some, or all of your mortgage back early should you choose to in the future.
First of all, it’s important to decide if you want to make an early repayment or if you want to move in the future. If you want to move house at a later date, plans arranged by us have a key feature called portability – allowing you to move the plan to another suitable property without penalty, provided the new property is suitable security for the lender. In this instance, there are no early repayment charges to make unless the new property is worth significantly less and you have to make a partial repayment on the Lifetime Mortgage as a result.
If you do want to make an early repayment, there are plans available that can allow you to repay up to 10% of the mortgage value per year without penalty.
If you might have future plans to downsize, then speak to your Responsible Equity Release adviser about this. Some plans might offer downsizing protection, which will allow you to move to a smaller home and repay the Lifetime Mortgage balance without penalty.
If you want to repay the equity release plan in full, different plans have different conditions. With some Lifetime Mortgage products offering fixed and defined early repayment charges, it’s important to get advice from one of our equity release specialists and choose the right product for you. A specialist equity release adviser will be able to explain how releasing equity will reduce the value of your estate and could affect your entitlement to means-tested benefits, and explain the options available to mitigate these risks.
Call us on 0800 048 5384 to arrange a free, no-obligation consultation with one of our fully qualified equity release specialists. They can help to provide a full breakdown of the plans and which early redemption penalties may apply.
To find out more about Lifetime Mortgages, and the various features available, why not book a no-obligation appointment with one of our fully qualified advisers? The Information Team can help with this on 0800 048 5384.