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  • Lifetime Mortgage

Lifetime Mortgage

How does it work?

A lifetime mortgage is a form of equity release scheme whereby a loan is secured against your property, providing you with a tax-free cash lump sum or a regular income to spend as you wish.

Interest is added to the lifetime mortgage loan throughout your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually paid back when the home is sold which could be when you move into long term care, or when you and your partner die. Subject to your age you can typically release between 18-50% of the value of your home with a lifetime mortgage.

ADVANTAGES

  1. Choose a cash lump sum or regular income, typically with no monthly repayments to meet
  2. You still own your home so all growth in the value (if any, of course) belongs to you
  3. 'No negative equity' guarantee
  4. Some plans enable you to guarantee an inheritance for your family
  5. Plans can be taken out as young as 55

DISADVANTAGES

  1. Inheritance amount will be reduced
  2. Interest rates may be higher than for normal mortgages due to the long-term nature of the loan.
  3. The amount owed on the loan can mount up quickly as interest is compounded.
  4. Early repayment charges may apply
  5. Tax position and certain state benefits will be affected
  6. You could raise a larger amount with a reversion plan, especially at a younger age

Please note: You can get interest only lifetime mortgages wherein you pay interest monthly, but lifetime mortgages are mainly offered as 'rolled up' interest. 'Rolled up' interest is paid off all-together in one final payment along with the total amount of your loan when your property is sold, as described above.

A LIFETIME MORTGAGE CAN QUICKLY ERODE THE REMAINING EQUITY AND AS A RESULT THERE MAY BE NO VALUE LEFT TO PASS ON.

THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.

Company address: Synchro Mortgage Solutions Limited, Synchro House, 512 Etruria Road, Newcastle Under Lyme, Staffordshire , ST5 0SY
T: 01782 346 491 Email: [email protected]

The guidance provided within this website is subject to the uk regulatory regime and is therefore primarily targeted at consumers based in the UK.

Synchro Mortgage Solutions Ltd is Authorised and Regulated by the Financial Conduct Authority.

Synchro Mortgage Solutions Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference: 506054. Registered in England and Wales.

Company Registration Number: 06582889. Registered address same as company address.

Synchro Mortgage Solutions are highly experienced insurance and mortgage brokers based in Newcastle-Under-Lyme and Stoke-on-Trent.

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Our initial advice is provided free of charge. There may be a fee for arranging your mortgage, the precise amount will depend upon your scenario and circumstances but this will typically be £495, payable on completion.

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