Client Stories

Equity Release

Meet David and Joan

David and Joan are in their early seventies and live by themselves in their three bedroom house that they own outright with no mortgage. They have guaranteed income from state and personal pensions that covers their day to day living expenses.

They had been using their small pot of savings to fund their active lifestyles and to ensure they could afford to have celebrations for the whole family over Christmas. However, this started to shrink and they were feeling nervous about being able to afford future holidays and presents for their five grandchildren.

With little work being done to their home since it was bought in 1976, and with mobility becoming an issue for David, they wanted to make some much needed home improvements.

They wanted to know

  • Could they get access to a lump sum to help them pay for the home improvements?
  • Would they be able to have access to money to supplement their pension income?
  • What were the consequences of taking out a lifetime mortgage on their two sons?

What we did

We worked with David and Joan to understand their exact future income requirements.

By understanding their financial situation, we were able to recommend the right Equity Release mortgage that was suitable for their needs. We also took them through the whole process of applying and ensuring they understood how the product worked.

As a result, they were able to access an immediate tax free lump sum of £20,000. In addition, a reserve account of £120,000 was set up that allowed them to make future withdrawals without hassle.

As we only recommend products with a “No Negative Equity Guarantee”, David and Joan’s estate will never owe more than the value of their property. This means their family is protected against having to pay back any outstanding loan amounts after they have passed away.

The end result

David and Joan are now enjoying the comforts of their newly renovated home with a new kitchen and bathroom, along with freshly decorated bedrooms and living room. There was even some money left over to put in place a stair lift for David.

They have access to extra money during the year to ensure they can continue to go on holidays whilst their health permits, whilst being able to spoil their grandchildren over the Christmas holidays. This can be taken on an ad hoc basis as their needs dictate.

More importantly, David and Joan can really enjoy their later years with dignity and financial independence, without having to worry about money again.