EquityRelease-Deals.co.uk Logo

What are Voluntary Repayment Plans?

Voluntary repayment plans are equity release products that allow homeowners to make optional repayments towards the loan, helping to manage the balance and reduce the overall interest accrued. These plans provide greater flexibility and control over your finances, as you can choose when and how much to repay without being tied to a fixed repayment schedule. Voluntary repayment plans in the UK are regulated by the Financial Conduct Authority (FCA), ensuring consumer protection and oversight.

Key Features and Benefits

  • Flexible Repayments: Make optional repayments towards the loan to reduce the balance and interest.
  • Access to Funds: Release a lump sum or regular income from your home’s equity.
  • No Fixed Repayment Schedule: Choose when and how much to repay based on your financial situation.
  • Retain Ownership: Continue living in and owning your home while accessing its value.
  • No Negative Equity Guarantee: Thanks to the standards set by the Equity Release Council (ERC), you will never owe more than the value of your home.

Factors to Consider

Eligibility

Voluntary repayment plans are typically available to homeowners aged 55 and over. Eligibility criteria can vary between lenders but generally consider factors such as the value of your property and your ability to make optional repayments. Ensure your property meets the lender's criteria, which often include the type and location of the property.

Costs

Understanding the costs associated with voluntary repayment plans is crucial. These can include interest rates, arrangement fees, valuation fees, and legal costs. While voluntary repayments can reduce the overall interest, it's important to understand the terms and conditions related to these payments. Compare different plans to ensure you understand all the costs involved.

Impact on Inheritance

Making voluntary repayments can help preserve the value of your estate, as it reduces the loan balance and the interest accrued. This means you might leave more to your loved ones. Discuss the impact on your estate with your family to ensure everyone understands the implications.

Impact on State Benefits

Taking out a voluntary repayment plan can affect your eligibility for means-tested state benefits. The additional income or savings may reduce the benefits you receive. It’s crucial to discuss this with an adviser to fully understand the implications.

Advice

Seeking professional advice is essential when considering a voluntary repayment plan. An adviser can provide personalised recommendations based on your situation and goals. They can help you understand the pros and cons and find the best plan for you. Speaking to an adviser is crucial to ensure you are making an informed decision.

Next Steps

Choosing the best voluntary repayment plan can be complex, but getting expert advice can make it easier. By understanding your specific needs and circumstances, an adviser can help you find the best plan that provides access to your home’s equity while allowing you to manage the loan effectively.

Interested in finding the best voluntary repayment plan? Speak to a knowledgeable adviser who can guide you through the process and help you make the right choice.

Get Expert Voluntary Repayment Plan Advice Now

Frequently Asked Questions

Voluntary repayment plans are equity release products that allow homeowners to make optional repayments towards the loan. This flexibility helps manage the loan balance and reduce the overall interest accrued over time.

Why Use Us?

Unbiased & Impartial - We search every equity release lender in the UK. We're an independent website with no affiliation to any equity release lender and therefore we don't promote any "special offers" from specific lenders.

Whole of Market - We search the whole of the equity release market including exclusive quotes and rates sometimes available to equity release brokers.

How It Works

  1. Complete our simple form
  2. Our partner, Unbiased, will connect you with one equity release adviser perfectly suited to meet your needs. Expect an email with their details.
  3. You'll receive a no-obligation equity release quote
  4. Your assigned broker will then contact you to schedule your first meeting.

What People Say

"He has kept me posted every step of the way and explained everything fully. There were no hidden costs. I would definitely recommend and will not hesitate to use them in the future"


"Very satisfied with the service received ! The advisor was excellent handling our equity release and was very helpful with all questions we had and changing our term twice! Thanks again!"

As Featured & Reviewed by

Review Centre
Reviews.io
Revoo
eKomi
Facebook Reviews
Google
Microsoft Bing
Yahoo!

What do we search?

*Example rate shown is from Hodge with a rate of 6.05% (12/09/2023). The rates shown are for illustrative purposes only, they should not be taken as any form of advice or recommendation. Actual mortgage quotes are based on individual circumstances.

  1. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.