Client Examples
These clients have received advice under a different legal entity prior to Later life Financial Advice starting.
This is for illustrative purposes only and does not constitute as advice.
Moving Home & Future Expenditure
Having arranged to port an existing Equity Release mortgage for Alan and Jackie to buy a bungalow in early 2020, a new lifetime mortgage was arranged with a drawdown facility to help with future expenditures. They had enough pension income to pay the monthly interest meaning the debt would not increase.
The new mortgage was on a cheaper rate and enabled them to complete home improvements on the property. The drawdown facility has not been used but provides them with peace of mind should they incur future unexpected expenditures.
- Optional interest being paid monthly
- Interest Fixed at outset for life
- Option to roll up interest in the future
- Overpayments allowed subject to limits which will reduce debt owing
- No negative equity guarantee
- Drawdown Facility for future use provided
This is for illustrative purposes only and does not constitute as advice.
Home Improvements
Two Sisters, Alice aged 83 years old, and Eileen aged 81 required to borrow funds so that they could complete necessary home improvements on their flat in Folkestone. They had limited retirement income but wanted to remain in the flat for their lifetime if possible. Their solicitor had suggested they take advice and recommended they see an adviser.
They raised £21,000 to cover the cost of a new kitchen and bathroom whilst also providing them with a small emergency fund to help with unexpected costs. Due to limited income, they chose to roll up the interest on the borrowing with the rate fixed for their lifetime. A drawdown reserve facility was also provided in case of future emergency expenditure being required.
Rolling up the interest means that their estate will be reduced on death but they did not have dependents and were happy with interest rolling up on this basis.
- Interest Fixed at Oustet for life
- Interest rolling up so debt increasing reducing estate value
- Overpayments allowed subject to limits which will reduce debt owing
- No negative equity guarantee
- Home improvement and house price growth supports estate value
- Drawdown Facility for future use provided
- Clients remain in their home, with no moving-related costs
This is for illustrative purposes only and does not constitute as advice.
Purchasing a New Car & Home Improvements
Michael was widowed but loved living in his village bungalow which he owned for many years. At 79 years old, he wanted to remain in a location with friends and near his family. However, he needed some additional funds to purchase a new car and complete some necessary home improvements.
£20,000 was raised as an initial lump sum to provide £9,000 for a new reliable car, with the remainder used for a new boiler, replacement dormer windows, and some general refurbishment – this meant Micheal could remain in his bungalow. A drawdown facility was also put in place to support future emergency expenditure if this was required, knowing that interest on this part would only be applied if drawn down in the future.
Michael chose to roll up the interest on his borrowing with the initial interest rate fixed for the lifetime of his mortgage.
- Interest Fixed at Oustet for life
- Interest rolling up so debt increasing reducing estate value
- Overpayments allowed subject to limits which will reduce debt owing
- No negative equity guarantee
- Home Improvements and House Price growth supports estate value
- Drawdown Facility for future use provided
- The client remains in their home with no moving-related costs
This is for illustrative purposes only and does not constitute as advice.
Gifting money to family
Aged 77 and 73, John and Ruth wanted to raise some money to clear some borrowing and gift £23,000 to support their son in purchasing an additional share in his property whilst also having funds available to support their future lifestyle including holidays and complete some home improvements.
As they had good retirement income, they good make monthly interest payments but wanted the option to roll up the interest in later life if one retirement income was lost. An initial lump sum of £60,000 paid off their borrowing, provided the lump sum to their son, enough funds to complete home improvements and the lender provided a drawdown facility so they could borrow further funds in the future to support holidays or lifestyle if required. The benefit of this meant that they were only paying interest on the amount they had received initially with the future drawdown of funds only attracting interest when required and received.
- Interest Paid Monthly
- Interest Fixed at Oustet
- Option to roll up interest if required
- Overpayments allowed subject to limits which will reduce debt owing
- No negative equity guarantee
- Any house price growth in value supports inheritance left to
- beneficiaries
- Drawdown Facility for future use provided
This is for illustrative purposes only and does not constitute as advice.
Funding Care & Remaining in her Home
Ms Jackson is aged 80 and living in a 3-bedroom detached property in Rochester. Unfortunately, she suffers from COPD and Dementia and she requires a live-in carer to support her on a daily basis. Her savings have been reduced to £4000 and both Ms Jackson, and her family, wanted the family to have power of attorney to support her desire to remain at home with care support. Medway Council has completed an assessment of her income and expenditure and awarded support towards her care costs of £430 per week which after taking into consideration her income and care expenditure, left her with a shortfall of £11672 per annum to meet her costs.
After consideration was given to Long Term Care Annuity Quotes, a lifetime mortgage was set up with an initial drawdown of £10,000 to support her first year of care costs with a reserve facility made available by Legal and General for a further £99,500 to support her future care costs helping her stay in her home for around 8 years subject to future costs.
The interest on this was to be rolled up but the family wanted the best for their mother in her remaining years alive.
- Interest Fixed at Oustet for life
- Interest rolling up so debt increasing reducing estate value
- Future drawdown amounts only attract interest when funds received
- No negative equity guarantee
- Future drawdown amounts are subject to interest rates at the time
- Drawdown Facility for future use provided
- The client remains in their home with no moving-related costs
This is for illustrative purposes only and does not constitute as advice.
Paying off an interest-only mortgage
Mrs Murphy after separating moved house aged 54 and took out an interest-only mortgage for 15 years to purchase her 2 bedroom property near the town centre with local buses available for when she grew older. She could not afford a repayment mortgage at the time but the property secured a home for her and her son on an interest-only basis.
Aged 69 she loves the property and would prefer not to downsize and move so her adviser arranged a lifetime mortgage at 30% ltv borrowing £84,000 allowing her to stay in the property.
She wanted to pay the interest monthly, so a lender was chosen to enable her to make voluntary payments which would mean the level of borrowing will not increase over time, and her son will therefore inherit the remaining 70% of the property plus any growth. A lender was chosen to allow this but with the flexibility that she could roll up the interest in later life if circumstances changed and the monthly interest was no longer affordable.
- Option of paying interest monthly
- Interest Fixed at Oustet
- Option to roll up interest if required
- Overpayments allowed subject to limits which will reduce debt owing
- No negative equity guarantee
- Any house price growth in value supports inheritance left to beneficiaries
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage. Some buy to let mortgages are not regulated by the Financial Conduct Authority.
Equity Release, Lifetime Mortgages & Home Reversion plans will reduce the value of your estate and can affect your eligibility for means tested benefits.
Later Life Financial Advice is trading style of Kent Financial Consultants Limited who are registered in England and Wales.
Registration Number: 12830348.
Registered Address : 64 High Street, Broadstairs, Kent, England, CT10 1JT.
The guidance and/or information contained within this website is subject to the UK regulatory regime, and therefore targeted at consumers based in the UK.
Later Life Financial Advice is a trading style of Kent Financial Consultants Ltd which is an appointed representative of Quilter Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Ltd is entered on the FCA register under reference 440718.
