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£8k extra cost of lifetime mortgage at Nationwide

  • Nationwide launched a deal letting borrowers release cash from their home 
  • This means that customers aged 55 to 84 don’t have to make monthly payments
  • Instead, the interest is rolled up at between 3.8 per cent and 4.8 per cent a year 

Nationwide customers who take out its new lifetime mortgage could end up paying £8,000 more than the cheapest deal

Nationwide customers who take out its new lifetime mortgage could end up paying £8,000 more than the cheapest deal.

The building society last week launched a deal letting borrowers aged 55 to 84 release cash from their home without having to make monthly payments.

Instead, the interest is rolled up at between 3.8 per cent and 4.8 per cent a year, and the debt is repaid when the borrower dies.

A typical 65-year-old couple wanting to release £71,500 on a property worth £325,000 would qualify for a rate of 4.25 per cent, costing £164,372 over 20 years.

In contrast, LV=’s 3.99 per cent deal would cost £156,364 over the same period – £8,008 less. 

However, you need to pay a £595 arrangement fee and bills for advice, which can be up to £1,500. 

Advice is included in Nationwide’s deal. 

Read more at DailyMail.co.uk


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