Securing a lifetime mortgage to increase income in retirement

What was the situation?

My clients got in touch with me following concerns from the increased cost of living.

Their only income was from state and personal pensions, and it was becoming evident that these will not be sufficient for them to maintain their current lifestyle. They wanted to increase their annual income by at least £15,000 per year, with the flexibility to increase this further should they need to.

Owning an unencumbered £1.25 million property, they were keen to explore what later life lending options were available to them and if it was possible to use this equity for this purpose.

What was the issue?

Due to their ages (both 70+), they wanted to make provision for at least the next 2 years initially as they felt interest rates would remain high for the short term. They also wanted the money to be accessible as required.

The clients were seeking a facility for at least 15 years, with the ability to have the option to draw down funds on an adhoc basis.

What was the process?

Knowing what the clients were after, it was important for me to find a suitable later life lending solution that would tick the boxes of their requirements. I spoke to a number of our relationship managers at the most suitable lenders for this scenario, explaining the situation in full.

The suggestion was a lifetime mortgage with an initial drawdown of £37,000, together with a drawdown facility of £320,000.

What was the solution?

The initial £37,000 is secured on a fixed rate for life, and the clients were able to achieve their £320,000 facility to access later on as desired. Each subsequent drawdown will be charged at the prevailing rate at time of drawdown, therefore enabling them to benefit if interest rates were to fall in the future.

The clients were delighted with my advice and they now have peace of mind for the next few years, with the flexibility they want well into the future.

Seeking a lifetime mortgage? At LDN Finance we’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.