It is a little known fact that Lifetime Mortgages/Equity Release Plans are now so flexible that they allow for virtually any kind of repayments throughout the life of the plan.
It is well known that you do not have to make any repayments at all, but this has for so long been a thorn in the side of people who want to take out this type of plan, but at the same time want to make some of repayment.
Of course if you are able to make any kind of repayment, then you are reducing the amount of compound interest that will accrue on any loan taken.
If you are the type of person that needs to have the strict discipline of a monthly payment going out of your account, then you can choose to make Interest only payments. This means that provided you keep up these payments, then only the amount borrowed at the start will be owed at the end. These plans are offered by More 2 Life and Retirement Advantage.
However, if you would like to either repay more than the Interest Only amount, or repay on an ad-hoc basis as and when you feel like – you can opt for a roll up plan that offers this facility within its plan. These plans are offered by lenders such as Aviva, Hodge and Legal and General and as long as you wait for 12 months you can then start to repay anything up to 10% of what was originally borrowed per year!!
So no matter what your situation is, a Lifetime Mortgage/Equity Release still could be right for you.
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