Equity Release Mortgage
Peter and Rosemary Thurston first came to FOCUS on recommendation from an existing client. At this time, I arranged a mortgage for them to purchase a new home in London.
A couple of years later, Peter and Rosemary contacted me for some further advice.
They were both retired and with Peter being 74 and Rosemary 71 and their only source of income now was their pension funds. Peter wanted to release some money to allow them both to ‘live life to the full’ during their retirement years. The current mortgage payments and a car loan were draining their spendable income each month.
House prices have risen significantly since they purchased the property over 2 years ago and the equity they have in the property has grown.
Taking into account their respective ages and the need for an interest only mortgage, a standard mortgage was not an option. More importantly, Peter and Rosemary were looking to reduce their monthly outgoings rather than increase them.
I explained the option of an Equity Release mortgage. This allows a percentage of the value of the property to be released as a cash payment to the borrower, based on age and the value of the property concerned. The interest is rolled up and the loan is then repaid on second death or in the event that the second applicant needs to go into long term care. No monthly repayments are made.
Having made some in depth research, my recommendation was an Aviva Equity Release arrangement with a fixed rate for life, with a “no negative equity” guarantee.
The Equity Release solution has enabled Peter and Rosemary to enjoy their retirement they deserve.