Touchstone Sussex – Case Studies

EQUITY RELEASE

Deposit Required

One of our retired clients recently contacted us, as he has a son who has a young family, with another on the way very soon - he wanted to see them in a new home of their own, as they were finding it increasingly difficult to pay for the rent on the property they were currently living in, and were understandably looking for a bigger place for them all too.

He therefore asked us if we could look into the possibility of a lifetime mortgage for him.

His sons’ mortgage would be far cheaper if he put down a bigger deposit. He wanted to gift his son some more money, reduce the size of mortgage and therefore make things more affordable for him.

We were able to discuss with our client exactly how much he could have, and all the advantages and any disadvantages for taking out an equity release mortgage, so he could make an informed decision and we then searched the market for the best package for him.

He wanted a fixed rate so he was able to easily judge how the balance owed will gradually increase over time, and we were able to secure him a product that had no arrangement fee or valuation fee either, to keep the initial costs down for him too. He also decided to take a little extra out for himself too, so he could complete some much needed home improvements on his own home.

The lifetime mortgage duly completed a couple of months later and his son has already found a new home to move into with his family, as first-time buyers with a deposit available, they could secure an offer on a new place very quickly.

For a review of any aspect of your financial planning, please feel free to call us on

0330 353 0025 and we will be happy to discuss your situation with you now. 

 

 

Touchstone Sussex – Case Studies

EQUITY RELEASE


Interest Only and No Repayment Vehicle

A local retired couple in their 70s recently asked us to help them, as they were becoming increasingly concerned about their current interest-only mortgage.

Their bank had recently written to them and stated they only had a few months to go before the term ran out and they were then due to repay the bank the outstanding amount, which in their case was £45,000. 

They had no method of repaying the mortgage as their savings were minimal, and were worried they would potentially have to sell and downsize to pay it off, something they were loathe to do, as they love their existing home.

After careful assessment and a full fact-find, we were able to reassure them that they wouldn’t have to sell up after all, as they could replace their existing interest-only mortgage with a Lifetime mortgage instead.

There are no monthly payments to make, unlike their current mortgage, so they were going to be reducing their monthly outgoings straight away and therefore boost their retirement income and as the debt is repaid upon the sale of the home, only when the last survivor either enters long term care or passes away, they had the peace of mind they wouldn’t ever have this problem again.

They were also able to secure a sizeable financial cushion of a drawdown facility at the same time too, which is going to allow them to access some more cash any time in the future, for when they require any repairs or refurbishment to their home or for making their last years together the best they can possibly be.

 

For a review of any aspect of your financial planning, please feel free to call us on

0330 353 0025 and we will be happy to discuss your situation with you now.