If you’re aged 55 or over and have taken out a lifetime mortgage in York, you may be wondering whether you can repay it early.

Most people take out a lifetime mortgage planning for it to be repaid when they pass away or move into long-term care.

But life can change, and so can your finances. If you now want to clear the loan, is it possible? Yes, but there are some important things to consider first.

What Is a Lifetime Mortgage?

A lifetime mortgage is a popular type of equity release in York. It lets you borrow money against your home without giving up ownership.

You stay in your home, and the loan is usually repaid from the property’s sale when you move into care or pass away.

Can You Repay a Lifetime Mortgage Early?

You can repay a lifetime mortgage early, but doing so might involve early repayment charges.

These are fees some lenders apply to cover the interest they expect to earn if you had kept the mortgage for life. The cost depends on the lender’s terms and how long you’ve had the loan.

Some lenders offer more flexible terms. You might be able to make small, regular repayments, or even pay the full amount early without facing a charge.

Always check your paperwork or speak to the lender to find out where you stand.

Things to Think About Before Repaying

Start by looking at the costs. If your mortgage has early repayment charges, calculate whether paying it off now will save you money in the long run.

In some cases, the fees can outweigh the benefit of clearing the loan early.

Next, ask yourself whether repaying is the best use of your money. If you have a lump sum available, it might be more useful for improving your home, supporting your income, or helping family.

Think about your wider financial picture, not just the mortgage. You should also consider the impact on your estate.

By repaying the loan early, you could leave more of your home’s value behind for your loved ones. But again, balance this with what you need in the present.

Speak to a Mortgage Advisor in York

If you’re thinking about repaying your lifetime mortgage in York, it’s worth getting some advice first.

A mortgage advisor in York can look at your circumstances and walk you through the pros and cons.

They’ll help you understand any fees, what your options are, and how repayment might affect your future.

Date Last Edited: June 3, 2025