Lifetime mortgage clients’ priorities may have changed due to the coronavirus pandemic.
With more clients needing to support day-to-day living or helping family members, they could be looking to access more funds.
The Just For You Lifetime Mortgage J6 LTV series could help.
To learn more, please read our case study below.
Case Study
J6 With Cashback Option Allows Frances To Top Up Borrowing By £10,250
Frances Knight’s story
- Frances, 76 is recently widowed and lives in a 2-bedroom terraced house in Surrey valued at £410,000. As her husband dealt with all of their finances, she isn’t aware that there’s still a £75,000 mortgage on their property.
- Her two children have recently lost their jobs and are struggling to make ends meet. One of them is facing the prospect of losing their home as he’s having difficulty paying the mortgage.
- Frances wants to raise funds to pay off her £75,000 mortgage, help her children with £50,000 each and clear her £30,000 bank loan.
How can the Just For You Lifetime Mortgage help her?
Our J6 series offers one of the highest LTV ranges available without requiring health and lifestyle information. Based on Frances’s age, the J6 series could provide up to 50% LTV. This means Frances would be able to release a maximum amount of £205,000, which is enough to meet her stated objectives.
However, she would also like to make some home improvements, so she’s keen to raise as much money as possible.
How can the Just For You Lifetime Mortgage make it even better?
Frances’s adviser has heard about the flexible cashback facility and checks whether this could produce a better solution for her.
A quick call to us generates the options shown:
| J6 LTV series | With 1% cashback | With 2% cashback | With 3% cashback | With 4% cashback | With 5% cashback |
| Additional amount Frances can access | £2,050 | £4,100 | £6,150 | £8,200 | £10,250 |
| Interest (AER%) | 5.64% | 5.75% | 5.85% | 5.96% | 6.06% |
As our cashback facility offers up to 5% of the initial loan amount (up to £20,000), Frances can access an extra £10,250 which she can use for her home improvements.
Although the interest rate is higher than without a cashback, the extra funds are invaluable for Frances. This gives her the peace of mind of knowing she could clear her mortgage, bank loan, help her children when they need it the most and make the much needed home improvements.
The Just For You Lifetime Mortgage would allow Frances to:
- Release the money she needs to clear her mortgage, bank loan and help her children2.
- Use the cashback option to get extra funds so she could improve her home.
- Use the flexible cash facility to release the funds as they’re required and avoid accruing interest on the total from day one3.
- Potentially reduce the interest rate over the period of the mortgage by paying off some of the interest each month.
Notes:
- The interest rates are correct as at 14 October 2020.
- Using a lifetime mortgage to repay existing debt may cost more in the long-term.
- For clients choosing to take the cash facility option, there will be a 0.05% increase to the MER rates.
For more information
Call: 01737 233297 Lines are open Monday to Friday, 8.30am to 5.30pm. Calls may be monitored and recorded, and call charges may apply.
Email: support@wearejust.co.uk
Or visit our website for further information: justadviser.com
