David and Lisa’s story

David and Lisa are 74 and 71 and live in Hampshire.

They have a small interest only mortgage coming to an end and their original intention was to sell and downsize. However, they are settled in their home and they do not want the disruption and costs of moving.

Both are now retired, active and in reasonable health using their extra time in retirement for gardening, holidays, eating out and various hobbies. They both spend 2-3 days per week helping to take care of their 3 grandchildren.

“We have a good time in retirement and really don’t want to move but don’t have the surplus cash to pay off the mortgage”.

Lifetime mortgage required: their property is worth £650,000 and £42,000 is needed to repay the existing mortgage. They also want a new car, some special holidays and to help their children and grandchildren so a further lump sum of £100,000 would be a real benefit.

How we helped David and Lisa

They did not expect to have a mortgage in later life and have been able to comfortably pay the interest each month. Downsizing would have paid off this mortgage and given them an extra sum but they prefer not to go down this route.

They can still cover a reasonable amount of interest but don’t want to be committed to this especially as they get older and there may be health concerns that lead them to re-evaluate their priorities.

We recommended a lifetime mortgage which helped them to:

• Pay off their interest only mortgage.
• Raise the additional sum that they wanted.
• Benefit from a low lifetime fixed interest rate of 3.8%.
• They want to continue to pay interest and the new lifetime mortgage did not require any payments but they have decided to pay the monthly interest, which because of the low interest rate is just £450 per month.

All information is illustrative only to show how a lifetime mortgage could be used. This information is not intended to provide any form of advice or recommendation.