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About the Author

Dan Osman

Head of Later Life at UK Moneyman Ltd.

Dan Osman

Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.

Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.

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Can you pay off a Lifetime Mortgage Early? 

Yes, you can pay off a lifetime mortgage early, however, there may be penalties or restrictions as to how much you can overpay and when.

Repaying Your Lifetime Mortgage Early

If you’re wanting to pay off a lifetime mortgage early there are 2 ways to consider: 

  1. Early repayment charges for paying the full amount off – These can range from 4 to 15 years depending on the provider. The longer you have had the lifetime mortgage for, the more likely you are to have lower or no charges.
  1. Overpayments – The majority of lifetime mortgage providers will allow you to make overpayments on your loan.  How much you can overpay will vary from lender to lender.  However, with most lifetime mortgages it is possible to pay one off by making overpayments, very similar to a regular mortgage. 

A lifetime mortgage is not designed for short-term borrowing requirements, they are expensive to administer, and they are a higher risk lending product for the lender.  If you are considering short-term lending, maybe a bridging loan or regular interest-only mortgage product maybe more suitable.

If you are looking to pay off a lifetime mortgage early due to moving home, lenders have different rules and criteria surrounding this.  You may be able to port your existing lifetime mortgage to a new property without charges if you qualify, this is usually after 5 years of inception.

Seeking advice and talking through your current situation and allowing for any foreseeable changes in circumstances will help your advisor recommend the most suitable lifetime mortgage for you, with the features that you required.

Why would I need to pay off my lifetime mortgage early?

Popular changes in circumstances that may result in the need to pay off a lifetime mortgage early are: 

To avoid the charges associated with paying off a lifetime mortgage early, it’s important to speak to an experienced independent later life advisor and for them to recommend the best product for you, which might not end up being a lifetime mortgage.

Our team are here to answer your questions about lifetime mortgages 7 days a week, you can click below to book a free, no-obligation consultation.  



About the Author

Dan Osman

Head of Later Life at UK Moneyman Ltd.

Dan Osman

Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.

Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.

Learn More

Later Life Guides

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Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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