Paying off your Lifetime mortgage

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 you wish to remortgage elsewhere for a better deal. Or 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.

Pay off your Lifetime mortgage early

Firstly, you need to contact us to request a redemption statement. This will tell you how much you currently owe on your Lifetime mortgage, including any fees payable. If you are selling your home, you need to ensure that the sales proceeds are sufficient to pay off your balance, including the rolled up interest. If this is not the case, then you are responsible for covering this 'sales shortfall' from other funds.

Fees and charges

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. 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.

However, please note that we no longer charge any Early Repayment Charges. Please contact us for more details.

If your property is worth less than your Lifetime mortgage

If you find that you are in negative equity, any resulting shortfall could be covered by our Negative Equity Guarantee. This was designed to limit the amount that must be repaid on the sale of your property to no more than the market value of your home at that time, as long as you are not in breach of your mortgage terms. Please refer to the terms and conditions of your Lifetime mortgage for more information. Before you proceed with any sale it is important that you contact us, so that we can discuss your options and let you know how we will manage any shortfall.

Reduce the size of your Lifetime mortgage

You could reduce the amount you owe 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.