We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Equity release and paying off early

is it possible to get equity release and paying it off early?

Comments

  • MWT
    MWT Posts: 11,116 Forumite
    10,000 Posts Sixth Anniversary Name Dropper

    Yes, but check the terms to see if there is a penalty for doing that.

    If it is a very old loan then there may still be a significant early redemption charge, if it is more recent then you will often find there is a reducing charge which will be very low or non-existent after 10 years.

    The details will be in the original loan documents and usually mentioned in the annual statements.

  • dreaming
    dreaming Posts: 1,302 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    I took equity release last year, partly to gift some to family and partly for some work on my house. I am currently paying just the interest each month (so the amount owed doesn't increase) but plan to start paying the actual loan down next year. I can pay up to 10% each year and the company provided details of potential charges for early repayment. As MWT says it is a reducing charge over 10 years.

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.9K Banking & Borrowing
  • 254.6K Reduce Debt & Boost Income
  • 455.7K Spending & Discounts
  • 247.7K Work, Benefits & Business
  • 604.7K Mortgages, Homes & Bills
  • 178.7K Life & Family
  • 262.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.