A retired couple in their seventies recently approached award winning equity release specialists Bower as they wanted to finance their holidays and hobbies and create an emergency savings fund to give them peace of mind should the unexpected happen.
After providing independent financial advice and researching the whole of the equity release market, Bower, who won Best Financial Adviser at the Equity Release Awards 2009, selected a flexible drawdown Lifetime Mortgage from a Safe Home Income Plans (SHIP) registered provider.
An initial, tax-free sum of £15,000 was released and a fund was created so that tax-free sums of £2,000+ could be drawn down if and when needed, without any charges. They have a fixed interest rate and enjoy competitive terms.
The couple were delighted and now enjoy an emergency savings equivalent to six months or more expenditure; regular getaways; money to spend on their hobbies and most of all, financial security in retirement.
Mr & Mrs Pascall of Romford in Essex said: ‘Bower were very helpful in explaining all our options and the costs involved and kept us fully up to date with the progress of our application.’
A flexible drawdown Lifetime Mortgage allows cash sums to be withdrawn as and when you please up to an agreed number of years or until the reserve gets used up. Often they will keep the homeowner within the limits for means tested benefits. Interest is only paid on the money drawn and that’s at a fixed rate.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668.