Monthly loan repayments can make your life very stressful and can become a burden for homeowners. If this is putting you off releasing equity, there should be no worries. With our lifetime mortgages and equity plans, all repayments can be made when the house is sold or when you pass away.
Repayments To Be Made
Instead of having to make monthly repayments, your loan, plus its accrued interest will be repaid either when both you and your partner pass away or move into long-term care. The sales from your home can always be used to make this repayment.
Since there are no monthly repayments, this should reduce stress for many homeowners and can also help you to pay off any existing debts you have, such as your mortgage.
Despite this, there are several repayment options with lifetime mortgages. You can decide to make regular interest payments or voluntary partial repayments if this suits you better. Interest payment plans allow you to choose how much interest you want to pay and how long for. If payments cannot be made, this can be converted to a standard lifetime mortgage to avoid monthly payments.
A newer option is to make voluntary payments of up to 15% of the initial amount you’ve borrowed each year. This can be done without any early repayment charges.