Text Size:  A  A  A

Equity Release for Holiday / Travelling

In the three years since her son John and his wife Rebecca had moved to Australia, Mrs Hamshaw had never been able to afford to visit. Rebecca has now just given birth to their first daughter and so Mrs Hamshaw was looking at ways of raising the necessary funds to go and spend a little time with her first grandchild.

She did not have the necessary funds to be able to pay back a loan but she heard about equity release and so she went on the internet to find out more. Mrs Hamshaw contacted an adviser to discuss her options further. She told him that she wanted to raise enough to travel to Australia, as well as being able to gift some money to her son so that he could afford to pay for his daughter’s schooling in the coming years. Mrs Hamshaw also wanted access to further funds so that she had the option of visiting Australia again in the future.

As Mrs Hamshaw did not need a huge amount of money to begin with, her adviser recommended a lifetime mortgage with a reserve facility. A lump sum of money could be taken to pay for the initial trip and gift to her son, with the remaining funds being left in an interest free reserve facility until she wanted to raise more money to go to Australia again.

Equity release may involve either a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.