Case Studies

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Case Study one -
Roll-up Cash Lump Sum

Name: Mrs Jones

Age: 65

Property: £750,000 (no mortgage)

She takes out a cash lump sum lifetime mortgage of £100,000 with an interest rate of 3.89%*.

The overall cost for comparison is 4% APR. 
The interest rate is fixed for life and is added annually.

15 years later, Mrs Jones dies

Total loan: £177,258 (original loan plus accumulated interest)

Property worth: £870,727 (if house had increased 1% per year)

Total Estate: £693,469 (once house is sold and loan is repaid)

*The actual rate available will depend on your circumstances. 
Ask for a personalised illustration.

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Case Study two -
Roll-up Drawdown

Name: Mr Philips

Age: 65

Property: £300,000 (large detached property)

He takes a drawdown with an initial lump sum of £20,000 and a cash facility of up to £80,000 available for up to 15 years. The interest rate is 5.5%*.

The overall cost for comparison is 6.2% APR. 
The interest rate is fixed for life and is added annually.

5 years later, Mr Phillips needs an additional £10,000
10 years later, Mr Phillips dies

Total amount borrowed: £30,000

Total loan: £47,394 (original loan plus accumulated interest)

If Mr Phillips had taken the full £30,000 in one lump sum at the beginning, the total loan and interest would be greater,
at £51,487.

*The actual rate available will depend on your circumstances.
Ask for a personalised illustration.

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Case Study three -
Interest-only Lifetime Mortgage

Names: Mr and Mrs Butler

Ages: Early 70s

Property: £550,000

Mortgage: £180,000

Their interest only mortgage is due to expire.

They have considered downsizing to a smaller property to clear their mortgage (however they have lived in their village their whole lives and have an extension renovation on the property so do not wish to leave) 

Mr and Mrs Butler explored re-mortgaging their property, yet due to their age, mortgage providers were unwilling.

They therefore enquired about Equity Release products and a lifetime mortgage was recommended. This would provide a lump sum amount to clear their mortgage.

Option to continue making flexible monthly payments with the possibility to repay the full amount borrowed with future defined charges.

Result: Mr and Mrs Butler can continue to live in their much loved home and are in a position to make monthly repayments to avoid interest roll ups of the loan.

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Case Study four -
Interest-only Lifetime Mortgage

Name: Mr Bennett

Age: 65 (runs own business, no plans to retire)

Property: £170,000

He takes an interest only lifetime mortgage of £20,000 with an interest rate of 5.2%*. 

The overall cost for comparison is 5.6% APR.

10 years later, Mr Bennett retires
(He chooses not to pay the monthly repayments on his interest only lifetime mortgage and coverts it to a roll up mortgage)

10 more years later, Mr Bennett dies

Total loan: £33,140
(original loan plus accumulated interest)

If Mr Bennett had chosen to retire at 65 and take the £20,000 as a lump sum initially, he would now owe £54,915.

*The actual rate available will depend on your circumstances.
Ask for a personalised illustration.

For a free no obligation consultation, call 0800 077 6885 or email info@equityreleaseinfocentre.co.uk