Frank Brook’s Story
- Frank, 70 is a retired widower living near Portsmouth.
- He thinks his mortgage-free home is worth £200,000 based on prices achieved by his neighbours.
- He wants to borrow £85,000 to improve his home
and garden and take his family on holiday.
How can the Just For You Lifetime Mortgage help him?
Frank thinks his home is worth £200,000. If he used a Just For You Lifetime Mortgage to borrow £85,000, this would give a loan to value (LTV) of 42.50%. This is close to the maximum LTV Frank could get (based on his age) on J4 at an interest rate of 4.88% AER.
It soon becomes clear that his property is not worth £200,000, being valued at £185,000. As a result, the LTV rises to 45.95%. This is above the maximum LTV Frank could get on J6 and so, a loan for the amount he wantsto borrow doesn’t seem possible.
How does the Just For You Lifetime Mortgage make it even better?
Frank’s adviser decides to check if Just’s percentage based cashback could provide a solution.
A quick call to us generates the options shown in the table below.
Using the property’s actual valuation, Frank can’t quite get the funds he requires with the J6 2% cashback, but he can with the 5% option and it only costs £288 more in year one compared to the original solution.
The Just For You Lifetime Mortgage would allow Frank to:
- Obtain the £85,000 he wanted despite his property being valued £15,000 less than expected.
- Achieve this with £288 increase in year one costs. Improve his home and garden, and take his family on a truly memorable holiday.
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
