A lifetime mortgage in Sheffield is a popular form of equity release, letting you borrow against your home’s value while continuing to live there. Many people choose this option because it doesn’t require regular repayments.

But life changes, and sometimes homeowners wonder whether they can repay their lifetime mortgage early. The short answer is yes, you can. But there are things you’ll want to think about first.

Is Early Repayment Allowed?

Most lifetime mortgages in Sheffield come with the flexibility to repay some or all of the loan before the full repayment is due. That said, these products are designed to be long-term.

The full loan, plus any interest, is usually repaid when the property is sold after you pass away or move into long-term care.

If you decide to repay earlier than that, your lender may apply early repayment charges (ERCs). These can vary depending on how long ago you took out the mortgage and the specific terms of your deal.

Why Would Someone Want to Pay It Off?

There are a few reasons why people might consider repaying a lifetime mortgage early. You may have come into money through an inheritance, downsizing, or selling another asset, and now want to clear the debt.

Others want to reduce the amount of interest that’s building up over time. Unlike traditional mortgages, the interest on a lifetime mortgage usually compounds, meaning it adds up faster the longer it runs.

Some people also decide they want to move house or change their financial plans entirely. In some cases, switching to a new product or provider may make more sense, especially if interest rates have improved.

What Should You Consider?

Before you repay a lifetime mortgage in Sheffield, think about these points:

Early Repayment Charges

These can be significant, depending on your lender and how long you’ve had the mortgage. Some lenders offer fixed penalties that decrease over time; others use variable fees.

Voluntary Payments

If your goal is to reduce the final balance, you might not need to repay the whole amount. Many lenders allow you to make annual overpayments, often up to 10% of the original loan, without facing ERCs.

The Impact on Your Property

Repaying early might help preserve more of your property’s value for your family. That’s important if leaving an inheritance is a priority.

Switching Deals

If you’re unhappy with your current terms, you might be able to remortgage onto a better lifetime mortgage product. This is something a mortgage advisor in Sheffield can assess for you.

Date Last Edited: June 4, 2025