Making Voluntary Payments on a Lifetime Mortgage

Many modern lifetime mortgages allow voluntary repayments without requiring you to convert the plan into a conventional mortgage. Making payments can reduce or slow the effect of compound interest.

Paying some or all of the interest

If you pay an amount equal to the interest being charged, the balance can remain broadly level. Paying less than the interest can still slow its growth. Some products also allow capital repayments within stated limits.

Check the product rules

Penalty-free payment allowances differ between lenders and products. Exceeding an allowance may trigger an early repayment charge, so the plan rules should be checked before making a large payment.

Why flexibility matters

A client may want to make payments while income is strong and retain the ability to stop later. Some lifetime mortgage products are specifically designed around this type of flexibility.

Read the lifetime mortgage guide.

Reviewed by David Farrell. Last reviewed: 3rd October 2026.