Lifetime Mortgage Example

With their property worth £200,000, they could take out £40,000 straightaway with the Flexible Option. However, as they don't need all of the money in one go, they choose the Flexible Plus Option, which also allows them to take advantage of the increasing maximum loan amount that will be available to them over the life of the plan.

They want to add a kitchen extension onto their home of 30 years, to accommodate their growing family when they come to visit. The bill for the kitchen extension comes in at £15,000, and they want another £5,000 for a holiday with their grandchildren. Mr and Mrs Wright therefore release an initial £20,000 to complete their home improvements, and spend a wonderful two weeks with their family in Spain. In fact they enjoy their time away so much they treat their family to a holiday in Florida five years later, by releasing another £10,000.

Then when Mr Wright reaches 70, the couple decide to replace their existing car by releasing a further £10,000. By releasing their money as and when they need it, not only are the Wrights still the proud owners of a beautiful home (not to mention a collection of great photos of their family holidays), they could also end up paying less interest on the loan, and so their estate may be worth more than with other plans. The Wrights are also completely aware of the amount of interest they owe having drawn money from the scheme, and have been careful to release the right amount of cash for their needs over the years.

These figures are for illustrative purposes only. A full assessment of your circumstances and needs will be undertaken before any advice is given.

How much can I borrow? | FAQs | Get Advice