ANNOUNCEMENT: Royal London confirms acquisition of Responsible Life and Responsible Lending - Find out more

Steve and Catherine’s equity release experience

Customer Story | Aug 2023

Steve and Catherine, 74 and 71, are a retired couple who live in a semi-detached house in Guildford. They bought their house for £65,000 in 1995 and have seen its value increase to as much as £500,000 over the years. They have always prioritised the needs of their children and grandchildren, so they did not have much savings left for themselves.

They had a long list of things they wanted to do in their retirement, such as buying a motorhome, extending their garden, and helping their twin granddaughters with their university expenses. With a strong attachment to their home, selling was not their preferred course of action so they decided to explore their financial options and contacted an equity release specialist.

At the meeting with their adviser, the benefits and risks of the different types of equity release plans were clearly explained. They learned that they could take out a lifetime mortgage, which would allow them to release an initial £110,000 from their property without having to make any monthly repayments. Additionally, if they wanted to reduce the accumulated interest charged and keep the overall cost down, the option of making voluntary payments was discussed and having an interest rate fixed for life meant they knew exactly what they would owe in the future.

Steve and Catherine decided to go ahead with the plan and used some of the money to clear their existing mortgage. They also used the rest of the money to fund their retirement dreams, purchasing a motorhome which was used to explore the country. A contractor was hired to work on their garden and some money was gifted to their granddaughters, who were starting their university courses.

Both Steve and Catherine said how happy they were with Responsible Life. Comfortable that they had made a wise decision that made the best use of their property wealth. They say: “We are living our retirement dreams!”

A worked example for illustrative purposes only.

Go back