Do you have clients with a mortgage shortfall?

10 February 2015
Category: Latest News
10 February 2015, Comments: 0

Adviser with older couple

Do you have clients with a mortgage shortfall?

If the answer is yes then there may be a suitable solution that benefits both you and your clients. By including the option of equity release in your retirement planning offering you could help your clients enjoy a more comfortable retirement.

A lifetime mortgage might be able to help your clients whether they are looking for money to carry out home improvements, clear debt or support family members. Whatever their needs equity release could be the answer.

Example: Mrs W and her interest only mortgage shortfall

Mrs W’s husband died three years ago and since then she has been paying all the bills including the mortgage out of her pension income. Mr W had always looked after the financial transactions for the household. Six months ago, the lender contacted her asking for £30,000 that was outstanding on her mortgage. Mrs W had no idea that she had inherited on interest only mortgage and had no means of paying off the outstanding loan. The lender gave her no alternatives other than to sell her property and downsize.

Mrs W has lived in the property for more than 30 years and did not want to move, and at 69 and with only her pension income, had no means of raising the money. Upon contacting us, Mrs W was able to release the amount required with a lifetime mortgage (which also gave her a significant reserve, or draw down facility), thus enabling her to pay off the debt and remain in her family home, hopefully, for the rest of her life.”

Think you might have clients in a similar situation?

If so, look out for those who:

• Have maturing interest-only or endowment mortgages where there is a shortfall – Perhaps you have tried to re-mortgage them but cannot find a lender to help?

• Have a high level of credit card debt or payday loans – Regular payment, high interest loans can leave many clients worried about the future and unable to live their retirement properly. This is such a shame when they are living in an investment worth many thousands of pounds. Lifetime mortgages can provide them with a solution to their financial worries.

• Are living on a fixed income and retired more than five years ago and want to be able to cover unexpected expenditures – People are living longer and healthier. They want more from their retirement having worked hard through their lives. Lifetime mortgages can help them to enjoy the retirement they have worked hard for and deserve.

If your clients are simply looking to retire comfortably or are wanting to help their loved ones, equity release could be a viable solution to offer them.

Contact us on 0800 612 6755 to find out more.

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