For many homeowners in their 60s and 70s, releasing equity from their property offers a practical way to support family without compromising their own financial security. This case study shows how one Lancashire couple used a lifetime mortgage to gift a deposit to their granddaughter - and how the right advice made it work for everyone involved.

Meet The Clients 👫

David (70) and Elaine (69) were long-term homeowners in Chorley with a mortgage-free property valued at around £370,000. Comfortable in retirement, they had one pressing goal: helping their granddaughter buy her first home. They had heard about equity release but had real questions about the impact on their estate and their own financial security going forward.

The Challenge They Faced 🏡

Like many people approaching equity release for the first time, David and Elaine had a mix of hopes and concerns. They wanted to help their granddaughter onto the property ladder while she was still young enough to benefit - but they were equally anxious about reducing the inheritance they hoped to leave behind, and uncertain whether releasing equity would affect their benefits or day-to-day finances.

How We Helped 💡

After a detailed fact-find covering their income, outgoings, health, and long-term goals, Rachel recommended a flexible lifetime mortgage from a lender on the Equity Release Council register. The plan was structured to release an initial £60,000 while retaining a reserve facility for future needs. Voluntary interest payments were highlighted as an option - not an obligation - giving David and Elaine the choice to manage the balance if they wished. The importance of seeking independent legal advice was also discussed, and both clients took time to involve their family in the process before proceeding.

The Outcome 📝

David and Elaine completed their lifetime mortgage within six weeks of their initial enquiry. The £60,000 gift went directly towards their granddaughter's deposit, allowing her to purchase a property in Preston that would otherwise have been out of reach. Both clients reported feeling more confident about their decision once they understood the full picture — and they remain in full ownership of their home with security of tenure guaranteed for life.

Why Advice Matters🤝

Equity release is not a product to enter into lightly, and this case study illustrates why individual advice matters. A generic online calculator cannot account for a couple's specific health profile, their long-term care needs, or the tax implications of a large gift. Rachel's whole-of-market access and CeRER qualification meant the recommendation was based on a full assessment - not just the rate. As with all our equity release clients, David and Elaine will receive ongoing support for the life of their mortgage.

Your Equity Release Questions Answered 🙋

Will equity release affect the inheritance I leave behind?

This is one of the most common concerns we hear, and it is a completely understandable one. Releasing equity does reduce the value of your estate, as the loan and any rolled-up interest will be repaid when your home is eventually sold. However, many lifetime mortgages include an optional inheritance protection feature, which ring-fences a fixed percentage of your property's value for your beneficiaries. If preserving an inheritance is important to you, this is something we will always factor into our recommendation.

Could equity release affect my state pension or benefits?

Your state pension is not affected by equity release. However, if you receive means-tested benefits such as pension credit, savings credit, or council tax reduction, releasing a lump sum of cash could affect your entitlement - depending on how much you release and how it is held or used. This is something we explore carefully during the advice process, and in some cases the way a plan is structured (for example, using a drawdown facility rather than a single lump sum) can help manage this.

What happens if I need to move into care or want to move home?

All plans we recommend are from lenders registered with the Equity Release Council, which means they include a no-negative-equity guarantee and are portable - so if you move to a suitable property, you can take the plan with you. If you move into long-term care, the loan is repaid from the sale of your property. We discuss these scenarios as part of every advice conversation, so you go into any agreement fully aware of how it would work in practice.

Is it possible to pay some of the interest rather than letting it roll up?

Yes - many modern lifetime mortgages allow you to make voluntary interest payments, which slows or stops the balance from growing. This can make a significant difference to the amount owed over time. You are never obliged to make these payments, but having the option gives you greater control over the long-term cost of the plan. Whether voluntary payments make sense for your situation is something we will work through with you based on your income and goals.