Faced with losing their home, a Kentish couple were able to save it using equity release.
Helped by Quartz Financial Services, they are safe in the knowledge that their home is their own.
In their seventies, they had bought a bungalow together in 2000 but last year, found out that the mortgage they signed up to wasn’t quite what they thought.
They had believed that their interest-only mortgage would continue to be extended unquestionably, every 5 years.
But their lender did not offer this any longer, leaving them owing £86,000 against their £220,000 bungalow.
With no way to pay and re-mortgaging not an option, the debt was transferred to an administration company that wanted to recall the loan and not extend it.
Sleepless nights and anxiety set in, with the couple facing the imminent sale of their beloved home and moving into a park home, which would also mean giving up their pet dog.
But before that was decided upon and with help from their children, they turned to the internet to find a financial advisor to help.
One tried and failed, but then another, who didn’t specialise in equity release himself, recommended Melinda Bush, owner of Quartz Financial Services, who found them a way forward.
She said: “I went to see them, fully understood all I could about them and their home, and used my expert knowledge of equity release providers to find one to release enough money to repay the debt to the previous lender.
“They now owe the new lender the full amount instead, plus interest accrued each year.”
In addition to Melinda visiting them, the solicitor she uses also met with them, to ensure they understood exactly, the terms they were signing to.
An extra level of protection for an already anxious couple, keen to avoid further negative financial implications.
They now have no monthly outgoing – a relief, as they were paying an interest only mortgage from their limited pension income.
The Lifetime mortgage they now have, allows both of them to have ownership and occupancy of the home until both have passed away, or moved into long-term care.
There is a ‘no negative equity guarantee’ from the provider meaning that if the interest accrued and the loan advanced would ever surpass the value of the property, there will be no debt
for the family or the estate to pay.
For a consultation about equity release, contact Quartz Financial Services – quartzfinancialservices.co.uk
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
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