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Case study: Lifetime mortgages
We were contacted by a client called John who was looking for advice on how he could pay off his mortgage before retiring.
The Challenge
We were contacted by a client called John who was looking for advice on how he could pay off his mortgage before retiring and to look the available options for his circumstances. John held an interest only mortgage and he thought his best option was to downsize and repay the mortgage off. Although John could downsize, he felt as though he was settled in both his home and community, so he was reluctant to move.
John was planning to retire but if he did, couldn’t afford to continue making repayments on his interest-only mortgage, which would mean he would have to work longer or downsize. We discussed John’s options and involved his family throughout the process to make sure the right decisions were being made for the whole family. John also expressed an interest in accessing an extra cash boost to improve his lifestyle, allowing him to enjoy his retirement and feel in control of his home.
The Solution
After showing John what options he had and discussing it with his family, he opted for a lifetime mortgage with roll up interest. This allowed John to free up additional income every month and enabled him to pay off his interest only mortgage.
With a fixed interest rate for life, John now has financial comfort, and is able to stay in his home and be in the community he belongs in. The peace of mind this has provided John is huge, which eliminates his worries and allows him to enjoy retirement in a stable financial position.
How a Lifetime Mortgage helps John:
- Allows him to pay off his interest only mortgage.
- Fixed interest rates for life so he knows his financial status and helps give him peace of mind.
- John won’t need to downsize or move away from his community.
- He has extra money every month to help him enjoy his retirement.
“Mortgage and Finance Arena helped find a great solution for me and I can relax and enjoy my retirement now”
John
What is a Lifetime Mortgage?
A Lifetime Mortgage is the most popular equity release option. It is a loan that is paid as a tax-free lump sum and is secured against your home, meaning you still retain ownership.
You should consider a lifetime mortgage if:
- You need money to make home improvements or purchase a vehicle
- You want to pay off existing mortgages and debts
- You wish to increase your disposable income
- You want to help family members financially
- You want to fund a holiday your savings won’t cover