Equity Release Case Study – Drawdown Lifetime Mortgage Solution

Mr and Mrs Brown (not their real name) required a loan of £90,000 to enable them to achieve various objectives. They wanted to make a gift to their son, undertake some home improvements including build a small conservatory, repay a credit card balance they were struggling to pay off and make up an income shortfall until Mrs Brown received her state pension in 2 years time. 

Mr and Mrs Brown are both retired and in their 60’s, they had researched equity release and thought it was an ideal option which would allow them to remain in their own home. 

They wanted a plan to be as cost-effective over their lifetime as possible to avoid accruing unnecessary interest, therefore a plan with the least impact was crucial so they can leave as much as possible behind to their beneficiaries and any potential future care costs. They have no plans to move in the future and were due a lumpsum payment from a maturing life policy in 7 years time.

After taking time to fully understand Mr and Mrs Brown’s objectives, their financial situation and views of what might happen in the future I researched the whole of the market and recommended a lifetime mortgage with reserve facility. The reserve facility means that interest is only charged when funds are requested in the future and therefore minimises the impact on their estate. Mr and Mrs Brown plan on using some of the proceeds from their life policy to pay off part of the loan and they wanted certainty over any early repayment charges. The lifetime mortgage I recommended has defined early repayment charges which provides them with this certainty.

Mr and Mrs Brown were very happy with the final outcome and are now able to relax and enjoy their retirement and their new conservatory.

If you are considering releasing equity and would like an informal discussion please contact me on 01202 925976. I provide initial advice for free and without obligation. Only if you choose to proceed and your case completes will a typical fee of £1,695 be payable.


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