Are you looking to repay your lifetime mortgage?
Our Lifetime Mortgage is designed to last for your lifetime and to be repaid when you (or, if borrowing jointly, both of you) die or move out of your home into long-term care. However, we understand that your circumstances may change and you may choose to repay your lifetime mortgage early for other reasons.
When repaying your lifetime mortgage, you may want to go back to your financial adviser for guidance. You should think carefully before you decide to repay any of your lifetime mortgage early as there could be an Early Repayment Charge to pay. It’s important to understand when an Early Repayment Charge may apply and how much it will be.
If you want to repay your lifetime mortgage, you can request a redemption statement which will give you the information you need to make the repayment.
If you're only looking to make a partial repayment on your lifetime mortgage, please visit our Optional Partial Repayment information page.
Is repayment right for you?
If you're choosing to repay your lifetime mortgage there are other options available which mean you may not have to repay it.
If you're considering moving, you may be able to take your lifetime mortgage with you, known as porting. If the home you're buying is worth less than the one you're selling we may ask you to repay part of your lifetime mortgage.
With our downsizing protection, if you’ve had your lifetime mortgage for five years or more, you can repay your mortgage in full without making any Early Repayment Charges. This only applies when the new property is in the UK and not suitable for a lifetime mortgage.
If you'd like to discuss these options further, please call us on 03330 048 444 Monday to Friday, 8.30am to 5.30pm. We may record and monitor calls.
If you no longer have a Drawdown Facility and want to borrow more money, you may be eligible for a further advance, if you've held your lifetime mortgage for over 12 months.
Any further borrowing must be on the same basis as your existing lifetime mortgage. The interest rate may be different depending on interest rates available at the time you request a further advance.
You’ll need to go back to your financial adviser for guidance.
To request an online redemption statement please have the following information ready:
- Account number – to identify your account we need your account number. This can be found on your Offer of Loan document or your annual statement.
- Email address – we need your email address to send you your redemption statement. If this is a joint account you only need to give us one email address.
- Authority to act on the customer’s behalf – before we can release any information relating to your account, we need to be sure that we're dealing with you, or someone who has the correct authority to act on your behalf. If you're not the account holder and we already hold your authority details, you can complete the online request form. If we don’t have your authority details, please call our customer service team on 03330 048 444. Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.
- Details of your initial loan or most recent drawdown – we'll ask for information about your account to check that you're the person who took out the loan or have authority to act their behalf. The information we ask for is on your most recent annual statement, so you may want to have this available before completing the form.
- Source of funds – we have a responsibility to ensure that the money we're receiving is from a legitimate source. If you're intending to send us the money directly, rather than through a solicitor, you'll need to provide us with information on where this money has come from. We'll need this prior to you making the repayment. To do this, call our customer service team on 03330 048 444. Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.
- Reason for early repayment – to make sure that we provide you with the correct information we'll need to know why you're making a repayment. If we need any further details, we'll contact you.
The simplest way to repay your lifetime mortgage is to request a redemption statement via our online form. You can repay your lifetime mortgage in four easy steps.
Step 1: Complete the online request form which will take about five minutes.
Step 2: When you’ve submitted the request, we’ll review the information you’ve provided. If we have everything we need, the amount you need to repay will be calculated on the day we produce and email your redemption statement. This may take up to two working days. If we need further details, we’ll call you back to discuss your request.
Step 3: When you’ve received your redemption statement, if you wish to make a repayment, your statement will include instructions on what to do next. Your redemption statement is only valid for the day that it is produced. If you don’t repay on that day, you'll need to call us for a new redemption statement on the day that you intend to repay.
Step 4: Once we receive your payment, we’ll credit your account, release the charge on your property and send you a completion statement.
An Early Repayment Charge is a fee which you would need to pay if you need or want to repay your lifetime mortgage before you (or, if borrowing jointly, both of you) die or move into long-term care.
The Early Repayment Charge is calculated to recover costs that are incurred when setting up a lifetime mortgage. The costs include transaction costs incurred in reinvesting the money, or due to changes in long-term interest rates.
Early Repayment Charges only apply until you (or, if joint borrowers, the youngest of you) reach the age shown in your Offer of Loan.
You’ll never have to pay an Early Repayment Charge of more than the amount shown in the Offer of Loan for each amount we lend to you, plus the amount of the Closing Administration Fee, which is payable whenever the lifetime mortgage is repaid in full.
In the following circumstances an Early Repayment Charge won't apply:
- If you repay after you (or, if joint borrowers, the youngest of you) reach the age shown in your Offer of Loan.
- If you move home and transfer your lifetime mortgage to a new property that's acceptable to us, and as a result, repay part of the lifetime mortgage as asked by us.
- If you have a lifetime mortgage that offers variable Early Repayment Charges and the Index at the time you repay is higher than or equal to the benchmark rate shown in your Offer of Loan.
- On any Optional Partial Repayment you make within the permitted limits.
- If at any time, after the fifth anniversary of your lifetime mortgage completion, you move to another property in the UK and we won't transfer your lifetime mortgage, to your new property because it doesn't meet our lending criteria.
- If at any time after the fifth anniversary of the completion of this lifetime mortgage, you sell your home and move into sheltered accommodation.
- If you repay after you (or if joint borrowers, the last surviving of you) dies or moves into long-term care
- If you are the last remaining borrower and you repay within three years of the other borrower having died or moved into long-term care.
The compassionate repayment feature allows you to repay your lifetime mortgage without paying an Early Repayment Charge within three years of one of the joint account holders passing away or going into long-term care.
If this applies to you and you wish to repay your lifetime mortgage, you can email us at email@example.com or call our customer service team on 03330 048 444 to find out more information. Monday to Friday 8.30am to 5.30pm. We may record and monitor calls.