Category: Case study

The Covid-19 pandemic has been challenging for people in many different ways, including Evadne’s son who moved in with his mother and, having rented his whole life, had practically given up any aspirations of owning property.

Having already downsized after the death of her husband, Evadne thought she was limited in the financial help she could offer until she looked into lifetime mortgages. While her son was initially concerned about the impact this would have on Evadne’s plans in later life, she explained that she would sell the property if she had to go into care.

Taking an optional payment lifetime mortgage meant her son could pay the interest each month. For Evadne, it was the perfect solution. Her son was able to put down a deposit on a house, enabling him to relax and move on with his life. Evadne was able to remain in the home she loved while supporting her son in regaining his independence. She also bought a new boiler, updated her lounge, and has kept some money back for a couple of holidays including a special trip to Montenegro. It was a place her husband had always wanted to visit but wasn’t able to before he passed away. “I feel as if I’m going for him. I call this stage of my life, my third adventure, not retirement.”

This case study was supplied by Legal & General.

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

“I was in reasonable health, but an injury meant I was unable to work. I owned my own home with a small mortgage, which was my only asset, and was struggling financially.

“My interest-only mortgage was also coming to an end and I was told I couldn’t extend the term. I was trying to downsize but received no sensible offers on my property.

“I was really worried and having trouble sleeping, until I was introduced to a specialist adviser by a friend. I felt so much better to learn I could use a lifetime mortgage to replace the existing loan.

“Using equity release allowed me to clear my mortgage and reduce my outgoings. I was also able to repay friends who had helped me to make ends meet. Releasing equity was the best financial decision I have made, and both my adviser and conveyancer made the whole process straightforward.

“I have subsequently sold my property and moved to a lovely house with my partner, taking the lifetime mortgage with me. Life could not be better, and my partner and I hope to get married in the next couple of years.”

This case study was supplied by Lucra. The picture is posed by models.

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

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.