Paying Off Equity Release Early
Paying off equity release early is possible but may involve charges. We explain your options and help you understand the costs.
Can You Pay Off Equity Release Early?
Yes, you can repay an equity release plan early, but most plans carry early repayment charges (ERCs) that can be significant — typically calculated using a gilt-rate formula rather than a fixed percentage.
- Early repayment charge calculations explained
- Plans with voluntary repayment options identified
- Downsizing protection features available
- Full cost analysis before you commit
- free initial equity release advice
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Early Repayment Charges
Most equity release ERCs are based on gilt rates at the time of repayment. If gilt rates have fallen since you took out the plan, the ERC could be 10-25% of the amount borrowed.
Voluntary Repayments
Many modern plans allow voluntary repayments of up to 10% of the original loan amount per year without penalty, significantly reducing total cost.
Downsizing Protection
Some plans allow penalty-free repayment if you move to a smaller property after a qualifying period (usually 5 years).
When Early Repayment Makes Sense
If you've inherited money, sold another asset, or your circumstances have changed. We'll calculate the exact ERC and help you decide.
Paying Off Equity Release Early — FAQs
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Your initial mortgage consultation is free with no obligation. If you decide to proceed with an application, a broker fee may apply depending on the complexity of your case — typically £199–£299, capped at 1% of the loan amount or £650 (whichever is lower). The exact amount is explained and agreed in writing before any chargeable work begins. Lenders may also pay us a procuration fee on completion.
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