Lifetime Mortgages- Fixed Repayment Schemes

With a fixed repayment lifetime mortgage you receive either a lump sum or a regular income for life, but unlike an interest only lifetime mortgage you don't have to pay any interest each month, nor does interest continue to build overtime like a roll up lifetime mortgage.  Instead, at the outset, you agree that when the home is eventually sold, you have to pay the lender an agreed larger sum than the amount you borrowed regardless of when you sell your home.

A fixed repayment lifetime mortgage which is SHIP approved still guarantees your right to remain living in your property for the rest of your life and offers a no negative equity guarantee in the same way as a roll up lifetime mortgage scheme.

Fixed repayment lifetime mortgages-advantages

• Under a fixed repayment lifetime mortgage, the amount of the charge is fixed at the outset and won’t go up or down.
• No need to worry about how the amount you owe is increasing.
• Under a fixed repayment lifetime mortgage, you do not sell any ownership and therefore you or your family still potentially benefit from any increase in its value.
• Unlike a full home reversion plan the amount remaining from the proceeds of the sale reverts to your estate and so there should still be something to leave behind for your beneficiaries.
• To avoid the problem of losing a significant amount should you die within the first 5-10 years, if you are willing to receive a smaller sum, you may be able to reduce the actual charge.
• You may be able to arrange a further loan in the future using any remaining value in the property.
• If you (or the last person in joint applications) need to move permanently into a care home, in the case of an income plan, in return for paying the agreed sum, you may be able to continue receiving the income to help meet care costs.

Fixed repayment lifetime mortgages-disadvantages

• If you die early you will receive poor value.
• You cannot usually raise as much with a fixed repayment lifetime mortgage as you could with a home reversion plan.
• You could be required to pay an early repayment charge if you wish to pay off the plan early.
• Eligibility of means tested benefits could be affected.
• The number of schemes available are very limited.
• Lifetime mortgages involve borrowing against your property, and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants.

Fixed repayment lifetime mortgage advice

Whether a fixed repayment lifetime mortgage would be right for you will depend on many factors including; your attitude to leaving equity for your beneficiaries, whether you can afford to make monthly repayments in which case an ordinary interest only lifetime mortgages would leave more value in your home, your age and the amount of money you need to raise.

The Equity Release Centre will ensure you choose the right equity release scheme to suit your specific needs and circumstances.

If you would like to arrange a free no obligation home consultation with an experienced equity release adviser, call us now on FREEPHONE 0800 970 4883 or complete our online enquiry form.

Further information

If you have any further questions about fixed repayment lifetime mortgages or other equity release schemes, or would now like to arrange a free home consultation, call us today on 0800 970 4883 or complete our online enquiry form.


This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

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Clicking on any of the following links will allow you to find out more about key information on releasing equity from your home.

Roll Up Lifetime mortgages | Drawdown Lifetime Mortgages | Interest Only Lifetime Mortgages | How to request a brochure | How to book an appointment