Easy Street Financial Services 9 Financial Planning 9 Outdated Myth: You Must Make Monthly Payments (or Let Interest Roll Up)
Outdated Myth: You Must Make Monthly Payments (or Let Interest Roll Up)
June 28, 2025

In the past, interest often rolled up by default. That meant the balance grew each year and reduced the value of the estate.

While this is still an option, it’s no longer the only option.

Most Lifetime Mortgages today don’t require monthly payments at all, and many providers now allow voluntary payments—which means:

  • You can make no payments at all (let interest roll up)
  • You can pay just the interest to keep the balance static
  • You can make ad-hoc repayments when it suits you
  • Or combine all three depending on your circumstances

It’s all about giving you control over your finances—especially in retirement, when flexibility really matters.

Why This Matters

No two retirement incomes are the same. Some people have pensions and investments to draw from. Others want to preserve their capital or simply avoid the pressure of fixed monthly commitments.

Flexible Lifetime Mortgages allow you to:

  • Reduce the total cost of borrowing if you’re in a position to make payments
  • Stay in control without being locked into a monthly payment
  • Adapt over time if your income or needs change

This flexibility is why more and more people are exploring Lifetime Mortgages—not just as a last resort, but as a proactive part of their financial strategy.

Not a One-Size-Fits-All Product

Like any financial product, Lifetime Mortgages aren’t suitable for everyone.

But with the right advice, people aged 55+ can access options that are tailored to them—not the other way around.

Some clients are using them to:

  • Clear an existing interest-only mortgage
  • Provide financial help to children or grandchildren
  • Supplement retirement income without dipping into savings
  • Plan for care costs or long-term needs

Whatever the reason, modern Lifetime Mortgages give you the choice to do what’s right for your situation.

Final Thoughts

So, do you have to make monthly payments on a Lifetime Mortgage?
No. But you can—and on your own terms.

That’s the beauty of today’s flexible repayment features. They’re not about forcing you into a financial commitment, they’re about putting you in control.

If you want to understand how this could work for you or a family member, feel free to get in touch. We’re always happy to have a no-obligation chat.

Risk Warning: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

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