Voluntary Repayment Lifetime Mortgage for a Retired Couple in Yorkshire
£110,000 · Lifetime · 5.65% fixed for life (MER). A couple in their late sixties in Yorkshire wanted to release equity for home improvements and to clear a small outstanding personal loan, but were concerned about the...
The Client
Couple
The Challenge
A couple in their late sixties in Yorkshire wanted to release equity for home improvements and to clear a small outstanding personal loan, but were concerned about the compound interest effect of a standard roll-up lifetime mortgage. They had pension income sufficient to make voluntary monthly repayments.
Our Solution
Doulton arranged a lifetime mortgage with a voluntary repayment feature, allowing the couple to make monthly repayments of up to 10% of the original loan per year without penalty. By making repayments equivalent to the monthly interest, the couple effectively used the product as a standard interest-only mortgage with lifetime security of tenure.
The Outcome
Equity released. Home improvements completed. Personal loan cleared. By making voluntary repayments, the couple have maintained the outstanding loan balance unchanged since inception. The product combines the security of a lifetime mortgage with the cost efficiency of regular repayments. Key highlights: Voluntary repayment feature - couple service the interest monthly; Outstanding balance maintained at inception level - no compounding; Combines lifetime tenure security with cost efficiency of repayments.