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This guarantees the right for new equity release customers to make penalty-free payments towards their lifetime mortgage.
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Equity release can affect borrowers' eligibility for certain means-tested benefits, which could be important if, for example, they fall into ill health.
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Because these regular repayments are made borrowers are not adding to the mortgage balance or attracting compound interest.
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In 2018, the Financial Conduct Authority (FCA) altered its rules surrounding retirement interest-only mortgages.
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