TRICIA PHILLIPS

home and can be a way to clear outstanding mortgage debt and boost your income to ease financial pressures in later life.

You will need to have a chunk of equity in your property for the numbers to add up so that you qualify. You typically get a plan worth up to around a third of the value of your home.

You don’t need to make any repayments – the interest on the amount you borrow rolls up over the years of the loan.

There are lots of new more flexible products in this area, offering borrowers ways of helping to keep the amount of interest paid lower, such as paying interest monthly and paying off chunks of the loan.

If you don’t want to or

PROS:

QI served in the Royal Navy for six years in the late 60s/early 70s. I originally signed up for nine years but bought myself out. Will I be entitled to any Navy pension?

Acan’t afford to make any repayments, this can be a cost-free way of being able to remain in your home – usually for the rest of your life or until you go into full-time care.

The more flexible mortgages can adapt to your changing needs throughout your life.

It will reduce the value of your estate and can affect your entitlement to state benefits. The interest adds up on these loans over years upon years, although most plans guarantee that you will never owe more than the value of your property, so there’s no risk of debt for your estate.

Once you have taken the cash out of your home, you will have fewer financial options later in life.

CONS:

I’m not sure to be honest. There’s lots of information on armed forces pension schemes at gov.uk/guidance/ pensions-and-compensation-forveterans. You may also find the Veterans Advisory and Pensions Committee (veterans-uk@mod.uk/ 0808 1914 218) useful.

QYvonne Jordan wanted to get her finances in order to enable her to give up work and manage on a lower pension income – so she turned to the equity in her home for some extra cash.

Yvonne, 65, who lives near Cheltenham, explains: “I’ve worked since I was 16 and had four children.

“Having maternity breaks has meant my pension isn’t brilliant, so I wanted to find the cash to clear some debt and do some improvements to future-proof my home, with the goal of reducing my outgoings so I can afford to retire in 2020.”

She said she wanted a mortgage product that would work for her now and in the future, offering the flexibility to pay the interest and make overpayments to reduce the balance if she wished.

She also wanted the option to make no payments at times so that she could go on holiday or if later in life she wasn’t able to afford the repayments. She chose a Lifetime Mortgage, a form of equity release, to unlock some of the money tied up in her three-bedroom home.

“I am sitting on a lot of equity but I don’t want to move,” she said. “It’s the house I’ve lived in for a long time. I have lots of friends nearby, and memories. I didn’t want to waste money on the costs of moving. I had a look around but couldn’t find anything smaller and suitable for me.”

So she did some research and got a few quotes. Then she saw an advert for Nationwide. “It was a high street name I knew and that made me feel more comfortable,” she said. “I had a meeting and they explained my options with the costs and long-term effect on my finances of each. This product was exactly what I needed.

“I decided to opt for a drawdown plan, where I can access a lump sum in chunks as I need it. That way I only pay interest on the amount I’ve actually taken.

“While I am still working, I can afford to make repayments but I can stop whenever it suits me.

“I am hoping to be able to leave something for my children, although I’ve already helped them out a bit, so they are not bothered.”

I have a personal pension with Barclays which I took out 30 years ago. I haven’t received a statement for a few years as I’ve moved house. I’ve tried to contact them and have been into a branch, but they couldn’t help. Any ideas how I can track this pension down? Barclays’ pensions are now administered by ReAssure

Ltd. You can find out more at reassure.co.uk or by calling 0800 197 5616.

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