Interest overpayments

Reduce the amount of interest that ia accruing and how much you owe, by making overpayments of the interest.

Reduce the amount of interest accruing


With a Lifetime Mortgage you are not required to make monthly repayments to the loan.  The interest is rolled up and added to the loan each month, increasing the amount you have to repay when you die, move into long term care or move out of the property on a permanent basis. However, if you can make voluntary overpyaments to reduce the interest that accrues on your loan on an ad hoc basis.


Some lenders will allow you to make payments of up to 15% of the initial loan amount each year without penalty.  This will not only reduce the amount of interest accruing but also reduce the overall loan and the amount owed when the loan is repaid.


Voluntary repayments are entirely voluntary and if you take out a plan that allows repayments but never make a payment there is no penalty for not making any payments.  The amounts and frequencies of these payments will vary between different lenders, so if you are looking for flexibility on payments you must select a provider who offers the flexibility you need.


Repayments can be fixed amounts each month, covering all or part of the interest, or they can be more flexible with you deciding how much and how often you can afford to make payments.  Some plans will allow you to change from a fixed monthly repayment amount to allowing the interest to roll up to the loan and then making ad hoc payments if you wish giving you the flexibility you need.

Use our simple ‘interest overpayment calculator’ below to find out how much you could save and how this will affect the amount you owe over time.

Repayments Calculator

What is the value of your home?

This figure give you an approximate figure of how much you could release, based on your age and the value of your home.

Please note, if you are over the age of 85, please use age 85 for this calculation.


Most lenders allow you to make annual repayments of up to 10% of the loan amount each year without incurring any penalries. Some products will allow repayments of up to 15% per year. The frequenxy of these payments will vary. As a guide the maximum you can repay per year is:

Do you want to make annual or monthly repayments?

You have selected a repayment amount that is higher than 10% of the penalty free amount. Please either reselect a lower amount or call us to discuss your options. You can repay more than 10% of the loan amount per year, however you incur further costs should you choose to.

Loan value:

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