Struggling to make ends meet on your pension? Let 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 salary 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/overseas that you have become used to?

How to top up your pension income

Thankfully someone has been thinking of you and your predicament and come up with the genius idea of using/releasing the equity in your property to provide you with a monthly income through an Income Lifetime Mortgage. Baffling? It certainly is, but also genius. And it makes complete sense.

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, which you can choose to pay back or allow to rollup. You can choose to receive an income from your lifetime mortgage over a period of either 5, 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?

So many things!

Without the additional funds provided by your income lifetime mortgage, many of these luxuries may be out of reach - but they needn’t be. If you are aged 55+, live in your own home worth a minimum £100, 000 in England, Wales or mainland Scotland, and require a regular monthly income for a fixed term then you could easily apply for this wonderful financial gift that your house could make to you, enabling you to stay in your home in comfort for as long as you desire.

  • Provide additional income
  • Lifestyle improvements
  • Holidays and trips
  • Home improvements
  • Pay off outstanding debt

If having an Income Lifetime Mortgage appeals to you, contact Kevin Woods to discuss your situation in confidence, and without charge or obligation of any kind.

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

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