Clearing your existing mortgage when you’re in or approaching retirement can not only be a welcome relief, but can also free up some of your monthly income to spend on some of the things you really want and need from later life.
Hertfordshire-based Felicity and her husband, Chris, were looking for a way to pay off their existing interest-only mortgage. Chris had been made redundant some years previously and the couple were struggling to keep up with the payments.
Turning to their savings to offset the shortfall, they found themselves getting further into debt and knew they needed to do something to help the situation.
“We have a large family who live with us, so downsizing wasn’t an option we wanted to consider,” explained Felicity. “I started to enquire about equity release and when we contacted Key, they were really helpful so we made an appointment.
At Key Equity Release, we offer lifetime mortgages only – the most popular form of equity release – which is a loan secured against your home. With a lifetime mortgage, you always remain the owner of your home and typically there are no monthly repayments, as the loan plus roll-up interest is repaid when the plan comes to an end.
“Our adviser discussed our options with us,” continued Felicity. “He advised us to wait until my next birthday to take out a plan, which meant more money could be released. He was efficient and took care of us throughout the whole process.
“We were pleasantly surprised as our property had risen quite significantly in value since we bought it 35 years ago.
“Since taking out equity release, we have paid off our existing mortgage and can enjoy our retirement without that burden. We also plan to install another bathroom with the money.
“I would definitely recommend Key. There was no pressure and it has taken a huge weight off our shoulders.”
To find out how much you tax-free cash you could release from your home, try our free equity release calculator
Things to consider
- Key’s plans come with a no negative equity guarantee meaning you will never owe more than your home is worth
- Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
- You can guarantee an inheritance with some of Key’s plans
- All of Key’s equity release advice relates to our range of Key branded products and is completely free of charge, so you can find out if it’s right for you without it costing you a penny