It was great to be able to release money from my home to pay off an existing mortgage. And comforting to know I could stay in my home for the rest of my life. I thought it would be impossible to get another mortgage at my age. The flexibility of voluntary payments was a huge weight off my shoulders.
About Alan
Alan is retired and lives in a property valued at £200,000 in Hertfordshire. He has an outstanding mortgage of £78,000, which is due to run out in nine months. He wants to pay off his outstanding mortgage but doesn’t have enough spare money.
Alan’s concerned his age would make it impossible to get another mortgage. He’s also worried that he won’t be able to continue living in his current property. He gets in touch with his financial adviser to discuss his options.
Flexible repayments
Alan’s financial adviser tells him he wouldn’t pass the affordability tests on a traditional mortgage, so he recommends a lifetime mortgage instead.
Alan’s financial adviser recommends our Capital Select Platinum lifetime mortgage, which allows him to make flexible payments from £50 each year. This means Alan can continue to make monthly repayments, but if he chooses to top up his pension income some months instead, he won’t be penalised.
Alan was able to borrow all the money he wanted, whilst retaining ownership of his home. He was also able to take advantage of our optional 3% cashback, which helped cover his set-up fees.
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.
