Andrew and Lesley's story

Andrew and Lesley are 72 and 68 and live in West Sussex.

They have no mortgage and live comfortably in retirement from their pension income. They are settled in their home, with many friends in the local area and do not want the disruption and costs of moving.

Both are now retired, and enjoy a very active retirement walking across the Surrey Hills and South Downs and sailing off the South Coast.

They have both private and state pensions and some savings and investments.

“We have all that we need but whilst our daughter has a good income she is struggling to get on the property ladder because she does not have a deposit."

Lifetime mortgage required: Their property is worth £350,000 and £75,000 is needed to gift to their daughter who will then use this as a deposit for her first house purchase.

How we helped Andrew and Lesley

 They paid off their mortgage many years ago and a mortgage at this stage would not have been their first choice. They are happy to help their daughter but really don’t want the debt building up with interest rolling up.

They may also want a further sum in the future but have no plans at present.

We recommended a lifetime mortgage which helped them to:

  • Provide a gift of £75,000 to help their daughter to buy her first home.
  • Benefit from a low lifetime fixed interest rate of 3.91%.
  • They don’t want the debt to build up on their property and so will cover the interest of £245 per month. Their daughter has also offered to pay this for them as she is directly benefitting from the cash being raised and gifted to her.
  • The lifetime mortgage product also allows for further drawings should a further sum be required.

All information is illustrative only to show how a lifetime mortgage could be used. This information is not intended to provide any form of advice or recommendation.