Find out how a lifetime mortgage managed to help this family get their son onto the property ladder.
To own a home of your own is a dream for many people across the UK, but it is one that is appearing further away than ever to many of the UK’s would-be first-time buyers. A recent survey found that 24% of rental tenants simply could not afford a mortgage in today’s property market.1 Many parents would dearly love to help their children make this first big step, but many may be concerned as to how they could afford to make a telling contribution.
This was the dilemma that faced the Connor family in Staffordshire. Their son was desperate to make a move onto the property ladder. He hoped a home of his own would benefit his career and give him the opportunity to start a family, but he simply couldn’t afford the deposit.
“We hated knowing our son was stuck in a rental property with no real prospect of getting into a home of his own in the current market”
As over-55 UK homeowners however, Mr and Mrs Connor realised that there was a way they could help. By releasing a portion of the equity in their property with a Drawdown Lifetime Mortgage, they could provide their son with a tax-free cash lump sum to contribute towards his deposit, and they would also have future access to their equity as and when they needed it.
“We heard about lifetime mortgages, and how they could be used to help your loved ones, from a colleague. We looked into it, and our advisor found us a plan that met our needs perfectly.”
“We have been able to contribute to our son’s first steps on the property ladder, and we can take comfort in knowing that we have easy access to a significant cash reserve to face any problems in the future – or, if we want, the money to pay for that dream holiday!”
With a lifetime mortgage, the Connors are guaranteed to retain full ownership of their property until they both pass away, or both enter long-term care. By choosing a mortgage provided by an Equity Release Council approved provider, they can also take comfort in knowing that they will never owe more than the value of their home.
“We are also pleased that our drawdown plan allows us to retain some control over our interest – we only pay it on the money we withdraw. This helps us remain in control of our finances.”
With more than 80 bespoke plans available, why not see if your home could be the secret to helping your family achieve its dreams today?