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“I'd rather my family have the money now when they need it”

Category:
Your Life
Tuesday 18 August 2020
Wanting to help your family financially when you can’t afford to do so can be frustrating. So it’s no surprise that over a fifth of Key customers this year have chosen to use some of their equity release funds to help loved ones.
 
Property wealth is now supporting a wide range of financial needs for those in or coming up to retirement. While some over 55s in the UK are choosing to release tax-free cash from their homes to spend on clearing existing debt, making home improvements or simply better their retirements, many are also choosing to help their loved ones too.

The money gifted to family can be used to help clear debts, pay for significant life events such as weddings or fund house deposits. Other uses include helping pay for university fees or buying cars.
 
Ex-teacher, Mary Haynes is one of our customers who used the money she released from her home to not only better her own retirement, but to help her children and grandchildren better their circumstances too.

When Mary retired from teaching after 32 years, she still had her mortgage and other financial commitments to keep. After using her lump sum pension and endowment to pay off the existing mortgage, her retirement finances were dwindling and she felt it was time to take action.

“In the past, whenever I’ve had a home improvement project or something which needed doing, I would take a short-term loan out and pay it back over three years,” she explained. “I’ve just never had any real money behind me.
 
They don't usually give loans to the over eighty and I found myself in a situation where I was sitting on over £300,000 of property, mortgage free, but I was still frightened to death should anything actually happen as I didn't know where the money would come from.
 
So I started to think about equity release. I talked it over with my three daughters and went from there. When I read up on it, Key seemed to be a good company, so I got in touch.”
 
Mary released some of the tax-free cash from her home with a lifetime mortgage, the most popular form of equity release. With the plan Mary took, she doesn’t have to make monthly repayments, as the loan plus roll up interest doesn’t have to be paid back until the plan comes to an end.
 
Now 81, Mary has spent her retirement with weekly swimming, line dancing, and walking with the Ramblers. Having this boost to her finances means she can keep her independence for longer.
 
“I'm hoping to keep as active as possible for as long as possible, so having more disposable income now, means I can look into stair lifts and future proofing the house should the time come. I've had a new kitchen installed. I've also had new French doors, windows and a new front door put in, as it wasn't secure at all before.”
 
By taking out equity release, she has also been able to help her family.
 
“It's meant I can support my great grandchildren to do what they want to do as well. The two girls love dancing and my great grandson does karate. It's meant I can help out with these costs. I've been able to help my granddaughter with her first child too - buying furniture and the things she needs. I'd rather they had the money now when they need it.
 
“I certainly would recommend Key to others and I already have! I recommended it to a friend and they went ahead with equity release and they're so happy too.”
 
Find out more about equity release and how it could help you fund the things you want in retirement. Download your free guide to equity release here.
 
Things to consider
 
It’s a Financial Conduct Authority requirement you receive specialist advice from a qualified equity release expert before releasing tax-free cash from your home.
 
Key Equity Release offer lifetime mortgages only, which is a loan secured against your home.
 
You should always think carefully about securing a loan against your home.
 
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
 
You always remain the owner of your home with a lifetime mortgage.
 
Key’s plans come with a no-negative equity guarantee, meaning you will never owe more than your home is worth.
 
With some Key plans, you can guarantee an inheritance.
 
Page last updated: Friday 21 August 2020