Marion is single and retired. She receives a state pension and a small occupational pension, which allows her to cover day-to-day living costs without making significant savings or being able to pay for larger expenses.

She wished to raise funds to pay for improvements to her home in Essex and make a cash gift to assist her son. She was apprehensive about equity release owing to the effect of interest rolling up and was also concerned it might prevent her from moving home again. At her adviser’s suggestion, a close friend of Marion’s attended their meeting to provide an independent view on the discussion.

The adviser explained the key features of equity release plans including fixed interest rates, a no negative equity guarantee, the ability to port the mortgage to another property and drawdown facilities. Marion felt confident to proceed and especially liked that the fixed rate made it possible to predict how much would be outstanding in future years.

She was delighted with the outcome as it meant she achieved her objectives of improving her property and assisting her son. By opting for a plan where interest rolls up, she is not committed to making payments that would have overstretched her budget.

This case study was first published in the Council’s Anniversary Report in January 2022. To read the report please click here.