Many people took out interest-only mortgages in the early 2000s. As these plans reach the end of their terms, clients are often left needing a way to repay the loan. Norman’s story shows how a lifetime mortgage can provide a solution.

Meet The Client🤵

Norman (68) owns a £240,000 home in Lancashire. He still had £76,000 left on his original interest-only mortgage and had dropped onto his lender’s standard variable rate of 7.79%.

When Norman turned to his regular mortgage advisor for help, they referred him to Aspect Mortgages. Because equity release is a specialist area, he needed tailored advice to explore the right options.

The Challenge He Faced 🏡

Like many people, Norman had planned to start repaying his interest-only loan — but life circumstances got in the way. Now, with the mortgage term ending, the lender wanted their money back.

His income wasn’t high enough to support a new traditional mortgage, and the high monthly repayments were leaving him with little disposable income. The stress of the situation was keeping him awake at night.

Selling wasn’t an option either: Norman loves his home, and the equity released from selling would not have been enough to buy a suitable alternative.

How We Helped 💡

Cases like Norman’s require extra care, as there can be multiple routes forward — including retirement interest-only mortgages (RIOs) and lifetime mortgages.

We visited Norman at home and carried out a full fact-find to understand his circumstances. After researching the market, we recommended a lifetime mortgage with the following features:

• Initial loan of £78,500 – to repay his existing mortgage, cover fees, and secure his future in the home he loves.

• Fixed-for-life interest rate – allowing Norman to budget with certainty.

• Voluntary interest payments – he can choose to pay interest when affordable, or let it roll up if needed.

• £11,000 drawdown pot – giving him access to extra funds for emergencies without extra set-up costs.

The Outcome 📝

Norman was able to repay his original mortgage and end a stressful chapter in his life.

His new monthly payments are voluntary and affordable — giving him the flexibility to pay what he wants, when he wants. The property remains 100% in his name, and he can live there for life. If he chooses to downsize in the future, the plan allows him to transfer the mortgage to another suitable property.

Why Advice Matters 🤝

Without advice, Norman might have faced selling his home or even the risk of repossession.

By recommending a voluntary-payment lifetime mortgage, we secured him a lower rate, protected his home, and gave him flexibility with both his monthly budget and future borrowing needs.

As with all our clients, we’ll continue to support Norman throughout the lifetime of his mortgage.

Thinking About Your Own Options?

If you’d like to explore whether a lifetime mortgage could help you move or retire comfortably, call the Aspect Mortgages 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.