Can we pay the interest on our equity release loan?

Dean Mirfin
22 January 2019


We have an equity release mortgage. The interest is always added to the next year and mounts up. It will mean that the equity release company will effectively own my property but allow us to stay in it. We are both 89 years old with no dependants to leave our property to. Care in our old age is the aim. Can we pay interest annually to prevent it compounding?



Most equity release providers offer a provision to make partial repayments for this very purpose.

Assuming that is the case with your loan, this typically allows for up to 10% of the original capital borrowed to be repaid every year penalty free.

This can also usually be done either as one payment or a series of ad hoc payments up to the 10% limit for the year.

If this is not the case with your loan, then you should speak to your lender as there may well be other options available.