A fresh start later in life

Equity release

Mr C came to us for advice to find out how he could buy the home he wanted which was for sale at over £340,000. He had savings of a little over £300,000 and income from an index-linked final salary pension of about £20,000 each year. He was concerned about being retired and of no interest to the mortgage companies. He felt he could afford the interest payments on an interest-only basis, but Mr C was worried about tying up so much of his savings in his new home. What could he do in the future to top-up his income if his ‘rainy-day’ emergency funds ran out?

For us, the fact that Mr C involved his daughter in his discussions and decisions was important. Chris considered Mr C’s situation, his needs and objectives. Chris confirmed that Mr C’s original thoughts about the residential mortgage market were correct and then looked at how Equity Release could provide a solution. His recommendation was in the form of an interest-only lifetime mortgage for the balance (and costs), secured against Mr C’s new home. The lifetime mortgage that Chris recommended had the optional facility to ‘roll up’ the interest payments in to the original loan, should Mr C ever need to stop paying the interest and use more of his income to pay bills without having to keep dipping in to his emergency funds.

With this solution in place, Mr C was able to buy the home he wanted, close to his daughter and grandchildren. He’s safe in the knowledge that the interest payments are affordable and he has the peace of mind that if he ever needs to find more money, he has the option of rolling up the interest. The fresh start Mr C dreamt of became a reality, with his financial future in safe hands.

This case study, about a lifetime mortgage / home reversion plan, is designed to aid discussion and should not be taken as a recommendation of any particular product or route. To understand the features and risks, please ask for a personalised illustration. No action should be taken without first seeking advice from a suitably qualified adviser.