When I first met my client, they were feeling the weight of their financial situation. Living on a modest pension, they were struggling to manage their finances, particularly with an outstanding mortgage that still needed to be repaid. Their home, their most valuable asset, held the key to easing some of this burden, so they considered an equity release plan. However, they were unsure how it all worked and what impact it might have on their future finances. That’s where our journey began.
Understanding Their Needs
The first step in our process was the fact-find—a comprehensive review of my client’s financial situation, needs, and goals. I wanted to fully understand their circumstances to recommend the best course of action. During our conversation, they expressed concern about the existing mortgage and the need to pay it off while maintaining enough income to cover daily expenses. They were also worried about how taking out an equity release plan might affect their long-term finances.
As we delved deeper into their finances, I noticed something significant. My client’s income was quite low, which raised a red flag for me. I knew that there might be other ways to support them financially beyond the equity release. This led me to explore whether they were entitled to any benefits that weren’t currently being received.
A Pleasant Surprise: Pension Credit
After carefully reviewing their income and expenses, I discovered that my client was eligible for Pension Credit—an often-overlooked benefit designed to help low-income pensioners. I calculated that they were entitled to approximately £90 per week, a sum that would make a substantial difference in their monthly budget.
When I shared this news with my client, they were both surprised and relieved. This additional income meant they would have more financial breathing room, which would significantly help them cover the interest payments on the equity release plan we were considering to repay their existing mortgage.
Recommending the Right Equity Release Plan
With the Pension Credit in place, we moved on to selecting the most suitable equity release plan. My client’s primary concern was ensuring they could repay their mortgage while still being able to stay in their home for as long as possible. We discussed the different types of equity release, and I explained the benefits and potential downsides of each option.
Given their situation, I recommended a lifetime mortgage. The extra income from Pension Credit would help them contribute towards the interest payments, reducing the overall impact on their estate.
Moving Forward with Confidence
By the end of our journey, my client felt much more confident about their financial future. They were reassured knowing that they had the additional support from Pension Credit and that the equity release plan we chose was tailored to their specific needs. This combination would enable them to repay their mortgage and enjoy their retirement with more financial stability, without the worry of losing their home.
Helping my client through this process was incredibly rewarding. It’s a reminder that sometimes, the best solutions come from looking at the bigger picture—beyond the immediate need—and exploring all the options available. Equity release can be a valuable tool, but it’s even more powerful when combined with other financial support systems like Pension Credit.
As I continue to help others in similar situations, I’m reminded of the importance of thorough financial planning and the positive impact it can have on someone’s life. My client’s story is just one example of how understanding all the pieces of the financial puzzle can lead to a more secure and fulfilling retirement.
Ready to find out more? Visit our dedicated later life lending page to arrange your free 10 minute discovery call!
Mike Jones
Later Life Lending Specialist
Mike Jones is a later life lending specialist who is responsible for the “Mewstone Later Life Lending” service. Mike has years of experience in retail banking as well as extensive knowledge of the later life lending sector.
Choosing to release money from your home is a big decision and it’s important for you to understand all the options available to you. This means that he will always offer you unbiased advice. It doesn’t matter to us which solution or lender is recommend, as long as it is the right one for you.