Stephen was 74 and had an interest-only mortgage which he had to repay by the age of 75. His property was worth £900,000, with £110,000 mortgage at 3.9% repayment rate.
When we met Stephen, his lifestyle expenditure was exceeding his income. He was eroding his savings to supplement his lifestyle, which were due to run out in around six years.
Stephen has two adult children who are financially independent; they wanted their dad to continue living life to its full whilst he can.
What we did
We arranged a lifetime mortgage of £150,000 at 3.8% fixed repayment rate, with £100,000 available to drawn on in the future if and when required.
Stephen was then able to pay off his existing mortgage. He also had £40,000 left over, which he used to buy his dream car, a Jaguar. The loan will take 19 years to double with no repayments (so a £300,000 repayment required in 2036 aged 93). This has also reduced his Inheritance Tax bill.
Stephen now has peace of mind regarding future capital requirements as is able to maintain his lifestyle, with added luxuries.