Your Time Equity Release

No monthly repayments

Interest rolls up in to the loan.


With a Lifetime Mortgage there is no repayments to make, either monthly or annually.  The interest due on the loan rolls up in to the loan on a monthly basis and only becomes repayable when you die, go into long term care or move out of the property on a permanent basis.  The amount repayable therefore increases quite quickly.


As there are no monthly repayments to make there are no affordability checks to be made and no need to prove your income or have sufficient income to meet any repayments.  There are no credit checks to be made and if you have a poor credit history this will not automatically stop from you from being eligible for a Lifetime Mortgage. If you have been declared bankrupt you will need to have been discharges from the bankruptcy to be eligible.


Although you are not required to make any payments to the loan most providers will allow you to make ‘voluntary’ repayments to reduce the amount of interest accruing on the loan.  Voluntary overpayments can be fixed amounts each month or ad hoc payments as and when you want covering part or all of the interest accruing on the loan or if you make higher repayments reduce the loan amount and the amount that has to be repaid.


In certain circumstances you may have to pay early repayment charges if you overpay or make payments over a certain amount.  Most providers will allow you to make payment of up to 10% of the initial loan amount without any early repayment charges.