CASE STUDY EIGHT
REPLACING YOUR EXISTING LIFETIME MORTGAGE
Here are Viva we feel that it is very important to make sure that you are on the best deal possible for your circumstances and we help clients with existing Lifetime Mortgages switch plans when this is appropriate.
We have special calculators that work out if replacing an existing Lifetime Mortgage is worthwhile and when this will benefit the estate, thus leaving more to the children.
Don’t be put off if your current lender has high early repayment charges because we will take this into account, along with the costs of setting up a Lifetime Mortgage to determine if this could be right for you.
In a recent case:
The client was 71 and owed the current lender £270,000. By replacing his Lifetime Mortgage which had an interest rate of 6.04%, we needed to factor in an early repayment fee of £6,000 plus set up costs of £1,500.
As we could secure a new loan at 2.96% we were able to show that client, that even when taking the costs into account, the estate would start to benefit after 1 year!
Not only would the estate benefit after 1 year, but the saving to the estate in the future would be £38,000 after 5 years and £110,000 after 10 years!!
The client was very pleased that he would be leaving a lot more to his loved ones.
Maybe we can help you??
Take the next step and find out more by requesting our FREE brochure.