Struggling to make ends meet on your pension? Could your house help you out?

21st December 2018

So, you have been receiving a regular monthly salary for most of your working life, and now that you have reached the age of retirement the financial security of your monthly pay slip is gone, only to be replaced by whatever form of pension plan you have, or have not, put in place. Undoubtedly your monthly income is now going to be lower than the income that you have become accustomed to; if this difference is significant, how are you going to be able to pay the bills and make ends meet each month, let alone maintain the lifestyle of eating out, buying treats for the grandchildren or going for the occasional trip to the spa that you have become used to?

How you could top up your pension income

Thankfully someone has been thinking of you and your predicament and come up with the genius idea of releasing some of the equity in your property to provide you with a monthly income through an Income Lifetime Mortgage.

So how does it work?

A lifetime mortgage allows you to release money from your home without having to move. It’s a loan that is secured against your property which can be used to provide you with an additional source of income to top up your pension for example. So, you can take out an initial lump sum to help you adjust to your new financial lifestyle, then set up a plan to provide you with a monthly income over a fixed income term.

Interest is added to the amount you owe each month, often referred to as compound interest. You can choose to receive an income from your lifetime mortgage over a period of either 10, 15, 20 or 25 years. Once the fixed term comes to an end the monthly income will stop, but interest will continue to roll up until the lifetime mortgage is repaid.

What if I do not have the means to repay the lifetime mortgage?

No worries! You never have to as the loan and the property work together to enable you to live your life and never have to worry about repaying the loan. Your house will look after you! You can’t make any repayments whilst receiving the monthly income anyway so you can relax. The lifetime mortgage is usually repaid from the sale of your home when you, or the remaining applicant (if the mortgage is in joint names) dies or moves out of your home into long term care. Naturally, any money left from the sale of your property after the loan has been repaid will be left to your beneficiaries.

What can I use my monthly income for?

A variety of things!

Without the additional funds provided by your income lifetime mortgage, many of these luxuries could be out of reach - but they needn’t be. If you are aged 55+, live in your own home worth a minimum £70, 000 in the UK, and require a regular monthly income for a fixed term then you could apply for this, enabling you to stay in your home in comfort for as long as you desire.

    • Provide additional income
    • Holidays and trips
    • Home improvements
    • Pay off existing debt
    • Help loved ones through gifting

    If having an Income Lifetime Mortgage appeals to you, contact Kevin Woods on 01489 232036, or at

    Why not get in touch and see how we can help?

    Equity release could be the answer to some of your financial questions. If you would like to know more about it, and see if it could be the right option for you, please book an appointment or request a call-back

    Providers include

    Pure Retirement

    Equity release will reduce the value of your estate and may also affect your entitlement to means-tested benefits. You should always think carefully before securing a loan against your home.

    Unless you decide to go ahead with a plan, our service is completely free of charge, as our fixed advice fee of £1,695 is only payable on completion of a plan.

    A lifetime mortgage is the most popular form of equity release, and is a loan secured against your home that’s typically repaid when you pass away or go into long-term care.