Interest-payment lifetime mortgage Save thousands over the life of your plan, by choosing an interest-payment lifetime mortgage, opting to pay some or all of the interest can allow you to reduce the cost of your borrowing, or in some cases gain access to discounted interest rates. The longer you commit to making payments, the more you'll save on the cost of borrowing. However, should you choose to stop your payments, this may lead to you having to pay a charge and an interest rate increase on your plan.
CASE STUDY EXAMPLE
Interest-Payment Lifetime Mortgage
Lifetime Mortgage
£100,000 6.5% MER*
£100,000 6.2% MER*
Initial loan amount
Interest rate
£0
£532
Monthly payments
Total cost of borrowing after 20 years
£365,645
£249,436 (inc. payments)
Net saving £116,209 *Monthly Equivalent Rate. Interest rates are for illustrative purposes only. Interest rate received and plan features are subject to eligibility. Ask your adviser for a personalised quote. £0
CASE STUDY EXAMPLE How Margret saved over £116,000 by choosing an interest-payment lifetime mortgage Margret is a 71-year-old divorced retiree looking to release £100,000 from her £600,000 property to gift money to her grandchildren. She commits to paying 100% of the monthly interest for 10 years. By making monthly interest payments for 10 years, Margret can save more than £116,000 over 20 years compared to making no repayments.
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