Equity Release for Mortgage Going Beyond Retirement

When Mr James was approaching his retirement, he realised that his mortgage was going to run for a further 7 years. Initially, he looked into the possibility of getting some part time work, but he soon realised that even with a part-time job to add to his pension, he would struggle to continue making payments on his mortgage. Mr James knew that if he was unable to make his monthly mortgage payments, his mortgage provider could eventually force the property to be sold so that the mortgage could be repaid.

Mr James did not want to move home and so he spoke with an equity release adviser about the options open to him. Following a thorough look into his situation, the adviser recommended a home reversion plan to Mr James.

The adviser explained that he had recommended a home reversion plan for a number of reasons. Firstly, Mr James did not have any children and so had told the adviser he was not concerned about leaving an inheritance to anyone. Furthermore, Mr James had not been able to raise sufficient funds via a lifetime mortgage to pay back his mortgage, but he could raise a little extra with a home reversion plan and this would mean the mortgage could be fully repaid.

Although Mr James would no longer own the property, he would be entitled to live there for the rest of his life or until he moved into long-term care. Mr James was happy with this arrangement as long as he did not have to continue making the monthly payments and so agreed to take out the home reversion plan.

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