Enhanced loan to value allows Charlie to release an extra £9,900

Charlie Woods’ story

  • Charlie is 65, single and lives in a 2-bedroom flat in Kent valued at £300,000.
  • A smoker most of his life, he suffered a heart attack three years ago and has had a heart by-pass. He’s currently on medication for high blood pressure and diabetes. Due to his medical conditions, Charlie chose to retire five years ago.
  • He wants to raise to funds to clear his £20,000 credit card debt, make some home improvements that will cost £18,000, purchase a new car to replace his 12- year old one and provide an early inheritance to his three grandchildren of £15,000 each.

How can the Just For You Lifetime Mortgage help him?

Based on Charlie’s age, his maximum loan to value is 37.6% on the J4 LTV series. This means he would be able to release a maximum amount of £112,800.

As Charlie would also like to be able to buy a time share in Portugal so he can enjoy his holidays in a warmer climate and keep the rest for future needs, he is keen to maximise the amount he can borrow.

How can the Just For You Lifetime Mortgage make it even better?

Taking Charlie’s health conditions and lifestyle into consideration, his adviser suggests that an enhanced LTV could be an option for him.

His adviser uses the Just Medical Enhancement Calculator and sees that a loan to value of 40.9% could be possible so they make an application.

With no medical/lifestyle underwritingWith medical/ lifestyle underwritingUplift
Maximum advance£112,800£122,700£9,900
Maximum LTV37.6%40.9%3.3%

As a result of Charlie’s health and lifestyle, our underwriting expertise means he can release an extra £9,900.

Although the interest rate is higher and the amount borrowed will be higher, the increased amount of lending is invaluable for Charlie as it gives him the freedom to enjoy his retirement.

The Just For You Lifetime Mortgage would allow Charlie to:

  • Release the money he needs to clear his debt, make some home improvements, purchase a new car and provide an early inheritance to his two grandchildren.
  • Use the enhanced LTV to maximise his borrowing so he can buy a time share in Portugal and keep the rest for future needs.
  • Potentially reduce the interest rate over the period of the mortgage by paying off some of the interest each month.

Note: These indicative figures are calculated from our medical enhancement calculator and are correct as at 9 June 2020.

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