Case study: Anika Bansal’s story

Anika, 60, lives near Hull and wants a smaller property closer to the coast, without moving too far from her family. She’s keen on an apartment in Bridlington and needs to find an extra £65,000.

Lifetime mortgage required: Her current home is mortgage free and worth £300,000. A loan of £65,000 means a loan to value (LTV) of 21.67%, just above the maximum age-related LTV for our lowest interest rates but within the limits for the next best rates (J2).

Using an interest rate of 4.29% AER, the interest in the first year would be £2,788.50 pa.

How does the Just For You Lifetime Mortgage help her?

Her adviser wants to see how Just’s flexible cashback facility can be used to improve this deal for Anika.

A quick call to their contact at Just generates the options shown in the table:

The 2% cashback of the initial advance reduces the loan that Anika needs, but the interest rate is higher so costs slightly more than the original solution.

The 5% cashback reduces the loan and LTV enough for Anika to qualify for our lowest interest rates.

It gives Anika the £65,000 she needs, with a £61,905 loan, and the lower interest rate means the year one cost is almost £400 a year less than the initial solution.

The Just For You Lifetime Mortgage enabled her to:

• Secure the £65,000 she needed for her apartment in Bridlington.
• Use the flexible cashback facility to obtain the funds needed at a lower interest rate, reducing the impact of interest by £400 in the first year.
• Decide whether she wants to reduce the interest rate even more by opting to service some of the interest rate each month.

All numbers are illustrative only to show how the Just For You Lifetime Mortgage could be used. This is not intended to provide any form of advice or recommendation.

For more information

Call: 01737 233297
Email: support@wearejust.co.uk
Or visit: justadviser.com
Lines are open Monday to Friday, 8.30am to 5.30pm