Equity Release makes a real difference to retired couple’s finances

2nd November 2017

Philip Dalley, Thompson Jenner Financial Services specialist Equity Release adviser, explains how a retired couple’s difficult financial situation was resolved by releasing equity from their home. Philip explains:

The background

We recently received a call from Mr and Mrs Bramble who are in their mid-60s. They had just retired and still owed £79,500 on their residential mortgage. They moved to a larger house many years ago and cashed in their endowment policy to help fund the move. They took an interest only mortgage to keep costs down and always intended to switch to a repayment mortgage at a later stage. However, as time went by with a growing family they simply forgot.

Their predicament

Understandably, they were very anxious when their mortgage lender said that the mortgage balance had to be repaid. The couple tried other lenders, but their pension income was considered too low under the Financial Conduct Authority affordability guidelines. They were seriously worried that they could lose their home. They considered selling and buying a flat, but wanted to keep the family home for the enjoyment of their grandchildren. In addition to this, their car was twelve years old and had failed its MOT and they had hoped to visit their daughter in New Zealand. Unfortunately, they had little in the way of savings.

Mrs Bramble read an article about releasing equity from their home and having to make no repayments. They were both a little sceptical about equity release. The article mentioned the Equity Release Council (formerly SHIP), who Mrs Bramble contacted. The Equity Release Council put them in touch with us as members.

How we helped

We helped Mr and Mrs Bramble by thoroughly explaining the different types of Equity Release and providing independent and impartial advice. We researched the whole of the Equity Release market and recommended a flexible drawdown Lifetime Mortgage from an Equity Release Council member. This allowed them to release an initial tax-free sum of £100,000; with a reserve fund of £23,000 should they need any more in the future. They now have no costly monthly interest payments, which has effectively increased their monthly disposable income.

Benefits to the clients

The benefits to Mr and Mrs Bramble are the comforting thought that they can stay in their family home for as long as they like and still be able to sell and move in the future. They are looking forward to a six week holiday of a lifetime in New Zealand and seeing their 9 month old grandson for the first time.

They also have a new car with no more worries about MOTs or breakdowns. Mr and Mrs Bramble now have financial security in retirement and can enjoy their retirement and relax.

To understand if Equity Release is right for you, please contact Thompson Jenner Financial Services specialist Equity Release Adviser Philip Dalley on 01392 258553. Appointments for our Devon financial services can be held in our offices at Exeter or Exmouth during office hours. However, if it is more convenient, we can arrange for the appointment to be at your home address or business premises. 

Sign up and stay informed