If you’re approaching retirement and feeling the pressure of rising costs, existing debts, or limited income, you’re not alone. This case study shows how we helped a couple in their 60s use equity release to take back control of their finances, without needing to move out of the home they love.
If you’re in a similar situation and need specialist advice, contact Simmonds today!
Understanding the challenge
Our clients were a married couple, both aged 64, who came to us for advice on using equity release to manage their finances during retirement. They were referred to us by another mortgage broker who trusted our expertise in handling more complex cases in equity release and later life lending.
The couple owned their home outright with no existing mortgage. However, due to ill health, both had stopped working and were relying on pension and benefit income.
Over time, they had built up unsecured debt while managing their health challenges. They came to us looking for a solution that would allow them to:
- Clear their existing debt
- Gift some money to their daughter
- Improve their day-to-day financial situation
At first glance, equity release seemed like a suitable route. However, the challenge was that their income was limited, and the amount they initially wanted to borrow would have led to a higher interest rate and a higher long-term cost.
A traditional mortgage wasn’t an option due to affordability, so we explored lifetime mortgage solutions that would allow them to pay the interest in full, as they were keen to avoid the debt rolling up over time.
Our approach
We began by taking a step back to look at their full financial picture.
Rather than focusing purely on how much they could borrow, we worked closely with them to understand their priorities, concerns, and long-term goals.
We walked them through how different options could impact:
- The level of interest over time
- Their overall debt position
- Their future financial flexibility
- Any potential impact on means-tested benefits
While the clients initially wanted to release a larger amount, we explained how this could increase the long-term cost and reduce flexibility later on. So we recommended a more balanced approach.
We explained that by reducing the borrowing amount and focusing on clearing their existing debts first, they would be able to:
- Access a lower interest rate
- Improve their monthly cash flow
- Reduce immediate financial pressure
- Keep their options open for the future
With this approach, we were able to give our clients a much more stable financial position and still achieve their key goals. But most importantly, it also meant they could reassess their position later, once their debts were cleared.
The solution
We arranged a lifetime mortgage (for equity release) tailored to their financial needs.
Once everything was agreed, we moved quickly to submit the application and secured a formal mortgage offer within just two weeks. We also supported them with the legal side, helping arrange a suitable solicitor and ensuring the process stayed smooth and coordinated from start to finish.
Because of their health conditions, we made sure everything moved at a comfortable pace. We explained each step clearly, answered any questions, and made sure they felt confident in every decision, without adding unwanted pressure at any stage.
The outcome meant our clients could:
- Clear their existing unsecured debts
- Gift money to their daughter
- Save money by lowering their debt repayments
- Secure a lower interest rate than initially expected
- Ease the financial burden of the debt
- Do it all without having to sell or downsize their home
A message from our valued client:
“We used Simmonds Mortgage Services recently and are very happy with the efficient, helpful and professionalism from the team, especially from Andrew Simmonds. We would have no problem recommending your service in the future.”
Simmonds Mortgage Services: More Than Just Mortgages
At Simmonds Mortgage Services, we take the time to understand what really matters to you. Whether you’re looking to clear debt, boost your retirement income, or simply explore your mortgage options, we’ll guide you through every step so you feel confident.
If you’re thinking equity release could work for you, we’re here to help you explore it properly, at your own pace, and in your best interests. Contact Simmonds Mortgage Services today, and let’s talk through your options.