A lifetime mortgage is a type of equity release available to homeowners aged 55 or over. It allows you to access money tied up in your property while continuing to live there. The loan, along with interest, is usually repaid from the sale of your home when you pass away or move into care.

Some homeowners ask whether it’s possible to repay a lifetime mortgage early. The answer is yes, but there are several important details to consider, including whether charges may apply.

In this article, we explain how early repayment works, how it might affect your mortgage balance, and what to keep in mind before making any changes to your plan.

What to Consider Before Paying Off a Lifetime Mortgage Early

Paying off a lifetime mortgage in Doncaster before the end of the plan is possible, but it’s not always straightforward.

There are several key points to think about if you’re considering this route, especially when it comes to cost, flexibility, and your long-term plans.

Early Repayment Charges

Many lifetime mortgages include an early repayment charge. This is a fee that may apply if you repay the loan in full before certain conditions are met.

The charge is usually highest in the early years of the mortgage and may reduce over time. Some plans do include features that reduce or remove this cost under specific circumstances, such as downsizing or joint borrowers passing away.

Interest That Has Built Up

Because lifetime mortgages work by rolling up interest over time, the amount owed can grow quickly. If you repay the loan early, you’ll need to cover both the original amount borrowed and any interest that has already built up.

Depending on how long the plan has been running, this could be a significant amount.

Product Features & Flexibility

Some plans are designed with more flexibility than others. For example, certain lenders allow partial repayments without a charge, or offer features like downsizing protection.

If you’re planning to pay off the mortgage due to a change in circumstances, it’s worth checking the small print of your current plan first.

Impact on Finances & Future Plans

Paying off your lifetime mortgage in Doncaster early may give you more freedom, but it could also affect your financial position.

It’s important to think about how this decision fits in with your broader plans, including where you’ll live, what income you’ll have, and whether you might need to borrow again in the future.

How to Pay Off a Lifetime Mortgage Early

To repay a lifetime mortgage early, you’ll need to request a redemption statement from your lender. This document sets out the full amount owed, including the original loan, any interest that has built up, and any early repayment charges that may apply. It gives you a clear understanding of the total cost involved.

The mortgage can be repaid in full using your own funds, the sale of the property, or money received through other means such as a pension lump sum or inheritance. If you’re thinking about repaying after a house move or financial change, it’s important to follow the lender’s process closely.

Before making any payments, check that all figures are up to date and reflect your plan’s features. Some lifetime mortgages in Doncaster include partial repayment options or exemptions from charges in certain situations, such as after downsizing. These details can make a big difference to the amount you’ll need to repay.

Our mortgage advisors can help you review your plan, understand the figures, and work out whether early repayment is the right step based on your current situation.

Lifetime Mortgage Advice in Doncaster

If you’re thinking about repaying your lifetime mortgage early, it’s worth speaking to a mortgage broker in Doncaster who understands how these plans work. Early repayment can be a big decision, and the terms vary depending on your lender and the product you have in place.

Our mortgage advisors can check whether any charges apply, look at the repayment figure, and help you explore your options if you’re considering switching, downsizing, or clearing the balance entirely. We’ll guide you through the process clearly, based on your personal circumstances.

Whether you’re ready to repay or just want to understand what’s involved, we’re here to help you take the next step with confidence.

Date Last Edited: June 10, 2025