RELEASING EQUITY IS A SMART MOVE FOR HOMEOWNERS WHO HAVE BUILT UP DEBTS

PAUL and Ninette Fitzgerald turned to equity release to clear debts they have run up despite decades of working hard in their jobs.

Ninette, who was a nurse for 50 years, said although she found her career rewarding, problems in the NHS made her job difficult.

She and her husband Paul, a self-employed carpenter, plan to retire in the next couple of years.

However, they had run up £25,000 worth of credit card debt. “God forbid how that happened,” Ninette said. “The problem is, we tried to pay the minimum, but the debt just doesn’t go down in a drastic manner. The interest rate is so high on credit cards you never seem to get to the bottom.”

She said £25,000 sounds like a lot of money, but it quickly mounted up. “We used credit cards for general living expenses, things we needed but didn’t have the capital for, such as car repairs.”

Paul and Ninette also owed £75,000 on an interest-only mortgage. They took out a partinterest, part-repayment mortgage, thinking they would be able to pay off the capital – but it didn’t turn out that way.

It was a stressful time and the couple felt their only option was to sell their London home.

They bought it 22 years ago for £76,000 and it has been a successful investment and is now worth £349,000. “We liked our house and the local area, which is why we looked at equity release.

“It allowed us to stay in our home and pay off the mortgage along with our credit card debts.”

Paul and Ninette contacted specialist independent equity release advisers Key: “We told one of its advisers what we wanted and he gave several options to do different things. Then he went away, did his research and got back to us with some proposals.”

The couple agreed on a plan and within five weeks the whole thing was complete. “We thought it would be a long, drawn-out conversation but were pleasantly surprised at the speed at which it all went through.”

Ninette said it went through very smoothly and they had since recommended Key to one of their friends.

The couple even had some money left over after clearing their debts. “We used it to redecorate the front room, which needed doing, and are able to enjoy nice meals out.”