Equity release has been around for a long time and it’s becoming an increasingly popular way for me to help my clients. I’m often asked by people I meet out and about “what do people use it for?” Let me tell you a story or two about my clients (all names have been changed)
Mrs A owned her home outright and had done for many years. She was widowed and although her son lived with her, she missed her family and old friends who live abroad. She had spent a lot of time thinking about her options and whilst she didn’t want to give up her home in the UK, she didn’t want to not spend time “back home” whenever she wanted. She had looked into ways to buy a small holiday home abroad but whichever way she looked at it, she either couldn’t raise enough money or couldn’t afford the monthly payments without it having a detrimental impact on her disposable income. Mrs A was referred to me and we talked through her situation, her plans for the future and she was able to use a lifetime mortgage to raise the money she needed to build her dream holiday home which was a dream come true.
Mr B had lived with his mother until she passed away and she had left her property to him in her will. There was an outstanding mortgage and she had left some other debts. To be able to inherit the property, he needed to clear the mortgage, but he had no money to do so. We explored the option for him to take a standard mortgage in his own name as well as retirement interest only mortgage options. These were not viable due to the impact on his income and expenditure. Instead, we completed a lifetime mortgage which was completed to clear the mortgage. It also cleared the debts she had left behind and provided the money for home improvements including a new kitchen, bathroom and windows. It enabled Mr B to continue living in the house as well as improve it.
Mr and Mrs C had held an interest only mortgage against their property for the last 25 years. The endowment policy they had was not profitable enough to clear the outstanding mortgage balance and the bank was calling in the debt. Mr and Mrs C had believed they would need to sell their house and downsize, moving to a new town to solve this problem. This was not their preferred option as it meant leaving friends and a community behind that they had enjoyed being part of. I was able to provide them with a lifetime mortgage to clear the balance, they didn’t have to make any monthly payments but most importantly, they were safe in the knowledge they could stay for the rest of their lives in their family home.
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