Tom and Anna are 75 and 71 respectively and live in Leeds. They currently have an interest only mortgage and the term is about to expire. They’re not keen on downsizing or moving out of their area.

Tom is still employed full time as a chef at a local restaurant while Anna is in part-time employment as a town planner at the local council. While Tom enjoys his job and wants to work for as long as his health permits, Anna wants to scale down her role with a view to retiring in five years’ time.

Both have a modest lifestyle and enjoy eating out occasionally. They don’t have any real hobbies but enjoy spending time together at weekends with their eight grandchildren.

“We’re comfortable at the moment and want this to continue into retirement even though we weren’t expecting this amount of mortgage debt at this time in our live.”

Lifetime mortgage required: Property worth £280,000 with £42,000 mortgage (so £238,000 in equity). Although equity release can be used to repay existing debt, it could cost more in the long term.

How does the Just For You Lifetime Mortgage help them?

Their mortgage repayment plans haven’t worked out well for them and they still owe £42,000. They’ve been able to service 100% of the interest while they’re both working but their concern was what happens when Anna retires. They didn’t feel able to commit to monthly payments indefinitely as Anna plans to retire in a few years.

Ideally, they wanted the ability to stop paying interest at some point while maintaining the security of tenure.

The Just For You Lifetime Mortgage enabled them to:

  • Pay off their interest only mortgage
  • Benefit from a reduction to the standard roll-up rate while they’re servicing interest
  • Benefit from the flexibility of payment holidays
  • Service interest while they are still working and when they want to stop, for example when Anna retires, the loan will automatically switch to a roll-up and a higher interest rate.

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

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