If you opted for a Horizon Interest Reward lifetime mortgage however, you are required to make interest payments as part of your agreed payment plan, with the option to make additional overpayments if you wish. You can make overpayments of up to 10% of the initial loan amount in any 12 month period without incurring early repayment charges (ERCs).
If you choose to make optional repayments, you’re in control of how much and how often you pay, with the minimum repayment being £50. This can be done through making either ad-hoc or regular repayments. However, please note that you can only repay up to 10% of the original release amount every year without incurring ERCs.
Set up a standing order
By setting up a standing order you can make regular repayments without the fuss. To set up a standing order, please let us know by emailing [email protected] with your account reference number and name.
If you use online banking, your bank will be able to set up your standing order online without needing to be sent any paperwork from yourself. If you don’t use online banking, we’ll be in touch to first confirm your identity and arrange for you to receive a standing order mandate for you to fill out and send to your bank.
Set up a standing order
Make an ad-hoc repayment
If you wish to make a one-off repayment without setting up a standing order, you can do so by emailing a member of our team on [email protected] or calling 0800 188 4815 and referencing your account number and name.
Please note that before we can accept a one-off repayment from yourself, we’ll first need to confirm your identity over the phone.
Make a repayment
Make a repayment on behalf of someone else
Only someone with a Lasting Power of Attorney can make a repayment or set up a standing order on behalf of someone else. And we’ll also need to confirm their identity beforehand.
If you wish to make a repayment on behalf of someone else, please email [email protected] or call 0800 188 4815 with proof of Lasting Power of Attorney or a Letter of Authority, and certified identification. A member of our customer service team will then be in touch.
Make a repayment on behalf of someone
Will I be charged for making repayments?
With a Horizon lifetime mortgage, you can pay up to 10% of your original loan amount each year without incurring an early repayment charge (ERC). However, in some circumstances you have the option to repay your lifetime mortgage in full without incurring an ERC.
For example, with our downsizing protection feature, if you move home in the future and your new property doesn’t meet our lending criteria, you can repay your loan in full without ERCs.
Alternatively, in the event of the joint applicant passing away or moving into long-term care, our early repayment charge exemption feature allows you to end your lifetime mortgage plan early and repay it in full if you wish.
Things to consider
- A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
- Equity release will reduce your estate’s value and may affect your entitlement to means-tested benefits
- A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future
- You should always think carefully before securing a loan against your home to repay existing debt
- The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
- The Modern Lending Advisers fee of £599 is only payable on completion. All their equity release advice relates to Standard Life Home Finance's Horizon lifetime mortgages.