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You asked: How does the interest added work?Interest is added on a compound basis - This means that the interest is charged on the amount borrowed and the interest already added. This quickly increases what you owe and will reduce the value in your property, possibly to nothing. Once you have been referred to a financial adviser they will provide you with a personalised illustration which will show how much the size of the loan will increase over time.
Taking out a lifetime mortgage will reduce the value you have in your home, and therefore the amount of any inheritance you leave. Your tax position and any entitlement to welfare benefits may also be affected.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
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