Home banker comes to the rescue of a worried couple
LIKE many couples, Robert and Claire Withers found they had less money than they would have liked after retiring.
Robert, 70, enjoyed a successful career spanning 40 years, much of which he spent working for the Navy and military services. Sadly, though, he had been made redundant several times in later life, which left a large shortfall in their income.
Claire, 60, still works as a cleaner in the local Navy base, but after she was diagnosed with multiple sclerosis, has been forced to reduce her working hours.
To add to their money worries, they had some unpaid mortgage on their £210,000 semi-detached home in Gosport, Hampshire. The debt was hanging over their heads and they were keen to pay it off for good.
So the couple decided releasing equity from their property was the best way for them to raise the cash they needed.
They contacted several equity release advisers but were less than impressed with the response, until they tried Key Retirement.
Robert says: “The first firms didn’t seem bothered but Key Retirement responded immediately and were so helpful. They even sent someone to our home to talk us through all of the options.”
Key Retirement’s adviser took time to explain how equity release works and could help them. “He made sure that we understood everything and we never felt under any pressure to sign up to a plan at any time,” Robert says.
The couple decided to draw a lump sum which they used to clear their mortgage debt, with some left over to boost their spending power and cover unexpected bills.
The cash injection has taken a real weight off their minds. Robert says: “Equity release worked for us, our financial future now looks a lot more secure.”
However, if you are considering equity release, always seek advice from an independent adviser who specialises in what is a complex area and take time to guide you to the right decision, and explain the impact on any state benefits you receive.
They can also talk you through policy options such as drawdown which allows you to take regular, smaller amounts as required while only paying interest on the money you have actually taken.
Another alternative is a plan guaranteeing your family will get a set percentage of your property’s value as an inheritance.
You will also need to take advice from a trusted solicitor who fully understands this area and who can give you legal advice. Try to involve close family members in any decision as the payout could shrink their inheritance.
However, if you have other sources of retirement income or accessible savings or investments, you probably do not need to take out equity release.