Bridging the gap between stopping work and receiving pension income can be a challenge. Read on to see how we helped Robert and Andrea fund early retirement:

Meet The Clients 👫

Robert (age 63) & Andrea (age 62) were referred to us by their financial advisor. They owned a home valued at £145,000 with no existing mortgage.

The Challenge They Faced 🏡

Robert and Andrea wanted to retire before their state pension ages but did not have sufficient funds in their pension pots to do so. Their financial advisor recommended that they speak to the Aspect Mortgages team to look at options for releasing funds from their home.

They didn't need a large sum upfront as they were looking to replace their monthly incomes. Because the funds were replacing regular income, the clients did not want to commit to the added expense of monthly mortgage repayments.

How We Helped 💡

The idea of a lifetime mortgage was new to the clients so we visited them at home to understand their priorities and circumstances, and to explain in clear terms how an equity release lifetime mortgage may be an option.

We recommended a lifetime mortgage for Robert and Andrea on a roll-up interest basis, where interest is added to the balance rather than paid monthly.

On our advice, the clients took a small initial loan to cover set-up costs and immediate needs. The rest of the loan was in the form of a drawdown pot - where income can be drawn as needed, fee-free, and interest only accrues on funds once they have been accessed.

The Outcome 📝

Robert and Andrea were able to retire early from their jobs while maintaining their lifestyle. .

The ongoing income from the drawdown pot will bridge the gap to retirement - at which point they can choose to stop withdrawing funds, make interest payments to prevent the balance from increasing, or continue to access their pot to supplement their pension incomes.

The initial loan also provided funds for the clients to arrange their wills and lasting power of attorneys, to ensure their wishes would be carried out in the future and to protect each other

Why Advice Matters 🤝

Without access to a lifetime mortgage, Robert and Andrea would have had to either continue to work until their state pension ages or accept a serious reduction in their living standards.

By recommending a drawdown-style plan, we ensured that the clients minimised the interest incurred as mortgage interest will only be applied to the drawdown funds as and when they are taken. This helps the clients to preserve the equity in their home at the same time as providing the security of a pot of funds.

As with all of our clients, we will be on hand to offer support and guidance to Robert and Andrea throughout the lifetime of their mortgage.

If you'd like to explore your own options, call the Aspect team on 01257 812345 today.

All our case studies are example of clients that we have helped at Aspect Mortgages but some details (names etc) have been changed to maintain privacy.

There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £1495 for an equity release/retirement mortgage.

Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

Aspect Mortgages Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/s/) under reference 305352.

Registered in England and Wales No: 051013801. 16 St Thomas' Road, Chorley, PR7 1HR.