*The purpose of this case study is to provide technical and generic guidance and should not be interpreted as a personal recommendation or advice.


Claudia is 73 years old and does not have a private pension. She does, however, own her own property, which is mortgage-free. Claudia wanted some additional money to maintain her standard of living during her retirement years. Claudia’s property is a detached house in Lancaster worth £230,000. She has lived in the property for 35 years and raised her children there before separating from her husband. She has a lot of emotional ties to the home and was very reluctant to move.
Claudia had been unable to re-mortgage her property with a traditional residential mortgage lender because of her age and lack of income. Claudia was, however, able to release equity in her home and elected for a Lifetime Mortgage. This enabled her to release a lump sum from her home without the need to make any monthly payments or worry about the prospect of leaving her beloved home.

Claudia is using her lump sum to top up her state pension and fund her retirement.

Key benefits:

  • Claudia increased her income in retirement without having a private pension or having to sell her home
  • She has no monthly repayments
  • She has the flexibility to borrow more in the future


Bill is a widowed grandfather. He has lived in the same house for 45 years, and it holds many happy memories of his late wife and of raising their family together. Bill’s pension income was only just covering his living expenses and, unfortunately, his house had fallen into disrepair. Bill thought long and hard about selling the home and downsizing to a smaller home that required no improvements or repair, but the idea was too upsetting, and he was very reluctant.

Bill talked to several Equity Release companies and chose an Equity Release Mortgage to provide not only the money he needed to make the necessary repairs, but also extra funds for a break with his brother, who had also been widowed. He also, very sensibly, retained some funds for any future financial emergencies or repairs.
Bill and his family now have peace of mind that his home is in good condition and that he can remain there making many more happy memories with his grandchildren.

Key benefits:

  • Bill accessed a lump sum that he could only otherwise have acquired by selling his beloved home
  • He has been able to remain living in a home that holds precious memories for him and can restore it to a good state of repair, allowing him to enjoy it even more
  • He has been able to enjoy some quality time relaxing in the sun with his brother, something neither thought they would ever be able to afford to do
  • He has no monthly repayments
  • He has the flexibility to borrow more money in the future

Brenda and George:

Brenda and George had to make some adjustments to their bungalow and, in doing so, incurred credit card debt and a loan. George, sadly, has Parkinson’s Disease, and Brenda has had to return to work on a part time basis in order to fund his £600 a month home care package.

Brenda’s ideal was to stop working and care for George herself. With the help of an Enhanced Equity Release Lifetime Mortgage for £20,000 and with the added option of drawing down further sums totalling over £100,000 in the future, this has become a reality.

Brenda and George have repaid their debts, and Brenda has been able to retire and care for George herself. They have even managed to fund a small holiday to Scarborough, a place where they formerly spent many happy summers together.

Key benefits:

  • Brenda and George have been able to access a lump sum and repay their debts
  • Brenda has been able to retire and care for George herself, meaning more precious time together
  • They no longer have to pay for a home care package or meet credit card and loan repayments, saving them almost £1000 per month
  • They have been able to remain in their home together in comfort and even enjoy a short break away to recharge
  • They have no monthly repayments
  • They have the flexibility to borrow more in the future

Robert and Valerie:

Robert and Valerie are a married couple from Durham. They are both 73 and live in a three-bedroom semi-detached house. They have a steady pension income but do not have access to very much capital, having used a lot of their lifetime savings to support their children in their studies, weddings and house purchases.
Robert and Valerie purchased their home 15 years ago. They paid £93,500 for the property, and it is now valued at £200,000. They are very happy in their home and, when thinking about their future care needs, they are keen to remain in their home with help. To enable this, they would like to make some home improvements, including adding a bedroom and bathroom at ground level in case climbing the stairs becomes difficult in the future.

Furthermore, Robert and Valerie have enjoyed several cruises in the past, and they would like a cruise fund to enable them to enjoy another holiday whilst they are in good health and physically fit.
Robert and Valerie’s home improvements would cost £15,000, and they would like a £5,000 cruise fund, bringing the total they need to realise these dreams to £20,000. The couple decided to release £20,000 via a Lifetime Mortgage. They also chose not to make any monthly payments and are aware that the remaining interest will be added to their mortgage, meaning that the amount they owe will double every 10 years. This means that by the time the Robert and Valerie turn 83, the £20,000 they borrowed and the rolled-up interest will amount to £40,000 with a 7.5 percent APR.

Even with the £20,000 in equity doubling within 10 years, the amount they borrow will still be less than the property’s overall value, especially when they add the additional downstairs bedroom and bathroom to the property. Robert and Valerie also like that they have the option to “draw down” up to £40,000 of further funds should they need or want to in the future—perhaps another cruise will tempt them!

Another benefit of the drawdown option is that Robert and Valerie will only be charged interest if and when they withdraw funds from their cash reserve facility. The minimum withdrawal amount is only £2,000, making it easy for them to manage their draw down lifetime mortgage effectively.
With this plan in place, Robert and Valerie were able to complete both projects, providing them with peace of mind for their future in their home and giving them the chance to create more happy memories.

Key benefits:

  • Robert and Valerie have accessed a lump sum that they would otherwise only have been able to acquire by selling their home
  • They have been able to remain in their home and make modifications to enable them to stay there as long as possible, even as they grow older
  • They have holidays to look forward to
  • They have no monthly repayments
  • They have the flexibility to borrow more in the future

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