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Case study example
Jon (59) and Sarah (56) took out equity release on their unencumbered four-bedroom, Manchester-based home worth £480,000.
Still working full-time, both wanted to release a modest amount from their home initially to repay existing debt; which included credit cards and an existing residential mortgage.
Realising they were asset-rich but cash-poor, they decided on a low-rate lifetime mortgage from another provider that allowed a 10% LTV and released £48,000 from their home's value.
Just two years later, Sarah suffered a fall and had to leave her job. With a significantly lower household income, the couple resorted to using credit cards and other personal loans to cover day-to-day costs.
Finding themselves in dire circumstances, Sarah and Jon turned to equity release again, but the maximum release on the low LTV plan they chose will not give them what they need. As a result, they’ll either need to pay off their initial plan, incurring further charges, and start again, or wait until they have aged enough to qualify for the release they need.
What could have happened if they chose Flexi Choice?
Unlike most products in the market, Flexi Choice allows borrowers to move up or down the LTV curve, adjusting with their needs, for example if they require further borrowing.
If Jon & Sarah had chosen our Flexi Choice plan, they would've been reassessed when they returned and could've taken the additional borrowing they needed from anywhere across the Flexi range, based on their current circumstances.
If you have customers who need a product that evolves with them throughout later life, Flexi Choice could be the one.
Learn more about Flexi now
This is approved for intermediary use only
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Jon (59) and Sarah (56) took out equity release on their unencumbered four-bedroom, Manchester-based home worth £480,000.
Still working full-time, both wanted to release a modest amount from their home initially to repay existing debt; which included credit cards and an existing residential mortgage.
Realising they were asset-rich but cash-poor, they decided on a low-rate lifetime mortgage from another provider that allowed a 10% LTV and released £48,000 from their home's value.
Just two years later, Sarah suffered a fall and had to leave her job. With a significantly lower household income, the couple resorted to using credit cards and other personal loans to cover day-to-day costs.
Finding themselves in dire circumstances, Sarah and Jon turned to equity release again, but the maximum release on the low LTV plan they chose will not give them what they need. As a result, they’ll either need to pay off their initial plan, incurring further charges, and start again, or wait until they have aged enough to qualify for the release they need.
What could have happened if they chose Flexi Choice?
Unlike most products in the market, Flexi Choice allows borrowers to move up or down the LTV curve, adjusting with their needs, for example if they require further borrowing.
If Jon & Sarah had chosen our Flexi Choice plan, they would've been reassessed when they returned and could've taken the additional borrowing they needed from anywhere across the Flexi range, based on their current circumstances.
If you have customers who need a product that evolves with them throughout later life, Flexi Choice could be the one.
Learn more about Flexi now
This is approved for intermediary use only
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