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.
Lending solutions from LDN Finance
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.
Need expert mortgage advice?
We can help.
Get in touch with our expert residential mortgage advisers today to get started on your property finance journey. Whether you’re buying your first home, upsizing for more space or refinancing your property portfolio, our award-winning mortgage brokers have got you covered.
Testimonials
Our happy clients
As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
Related Case Studies