Given how hard it is today for young people to get onto the property ladder, I wanted to be able to help my children with their first-time deposits without worrying about the impact of interest building up and reducing the value of my property.
About Joan
Joan is newly retired and would like to help her children, aged 31 and 34, get onto the property ladder. She lives in a £500,000 property, but doesn’t want to downsize because she enjoys where she lives. While she has a pension pot and savings in place, it’s not enough to give her children the money they need to qualify for a mortgage.
Providing an early inheritance
Joan doesn’t want to be tied down with fixed monthly payments in her retirement. Recognising this, her financial adviser recommended a lifetime mortgage.
Joan’s financial adviser recommended Capital Select Super Lite lifetime mortgage, allowing her to release £50,000 from her home. Joan can choose to repay up to 10% of the loan amount each year, reduce interest roll-up and protect a future inheritance for her children too.
Joan was able to borrow all the money she wanted and provide an early inheritance to her children when it was most needed.
Important Information
This case study is a worked example and is for illustrative purposes only. We have taken care to ensure the information is accurate, but we accept no liability for any of the information we provide that you decide to use or for the suitability of any of the statements made. Individual financial advice and tax advice should be sought prior to taking out a lifetime mortgage, as releasing equity can change the inheritance tax position of the borrower and their estate, as well as potentially altering their eligibility for welfare benefits.
