It can be stressful knowing you’ve got a mortgage hanging over your head when you’re around retirement age.
When your income changes or begins to slow down, that monthly amount for the mortgage can become uncomfortable or restrict you doing what you want to do. That’s why many people look to equity release as an answer.
Mark and Yvonne – a real life example
“Life was starting to feel a bit constrained, we’ve got lots we want to do but knowing there was a mortgage payment to make just meant we had to be continuously careful with our budget.”
Mark and Yvonne’s mortgage still had a few years to run – but having both retired, the payment was taking an increasingly large chunk from their monthly income.
“We talked about selling this house and getting something smaller – but we’ve got so many memories here, we’d be devastated to leave. We talked to a friend and she suggested releasing the equity we have in the home – then paying off the mortgage.”
“When we arranged a visit to look at some plans and how the numbers might stack up, I could have jumped for joy! It was literally perfect for our situation.”
Mark and Yvonne were able to settle their existing mortgage with the money released – and have an amount left over to leave to their children further down the line.
“We talked about it with our family first and they agreed that it was the right thing to do. They’re not expecting anything from us so just wanted to make sure we were happy and financially sound. They don’t realise it but we’ve made sure there’s a bit kept aside that we can leave to them too.”