Kevin and Judith had an existing mortgage and were looking to borrow additional funds to purchase a static caravan. When completing the full equity release fact find, it became obvious they could actually achieve what they wanted on a standard repayment mortgage.

Many mainstream mortgage lenders were closed off to them as affordability considerations would limit the size of loan they could afford to service beyond the point of reaching state pension age. Others had maximum age limits which ruled them out of the equation, while the presence of recent and historic instances of adverse credit on their report further restricted their options.

After exploring various options, Kevin and Judith’s adviser was able to identify a lender who would consider adverse credit as well as allowing a mortgage term that would extend into retirement. Having secured a repayment mortgage, both Kevin and Judith were happy with this outcome. They are both relatively young and could demonstrably service the interest on their loan.

Deferring the decision to use equity release means, should they need this option in the future, they will have the benefit of having more equity to draw on as a result.

This case study was supplied by Probity Mortgage Services. The picture is posed by models.

It first published in the Council’s Anniversary Report in January 2022. To read the report please click here.