Mrs Davis, aged 73 came to me last year after struggling with her mortgage.  She had a mortgage of £30,000 (she had taken it out quite late in life following a divorce) with an end date of 2013.  Her income was £15,000 a year so ‘officially’ should have covered the mortgage debt comfortably.  The reality was different.  Although the mortgage was on a capital and repayment basis, in reality her monthly payments of £690 were not making a huge dent in the amount of capital owing. She was regularly borrowing money on her overdraft to help cover her outgoings.  The lender had also confirmed that they would not extend the term of the mortgage (owing to her age) and would not allow her to put it on interest only.  Although she had considered moving home she wanted to stay as her grandchildren lived close by.

Having discussed her options with her, she then spoke to her family and decided to go ahead with an equity release mortgage, just one of the solutions recommended to her, which would cover the cost of repaying the mortgage debt.  This instantly released a further £690 back into her budget, but perhaps even more importantly was the sense of relief she felt knowing she did not have to find a lump sum in two years time to repay the mortgage debt.

Having spoken with her recently she said she just feels so relieved to have cleared the mortgage.  She is now living within her means and she is a happy lady.

Lorreine Kennedy, Care Matters