A lifetime mortgage can help you move closer to family in later life.
When Jean’s first grandchild arrived, “just popping round” meant a 90-minute drive each way. She wanted to be closer, but the homes near her daughter were pricier than where she lived. Selling would release some equity, but not quite enough to buy the bungalow she’d set her heart on. She also didn’t want the commitment of a traditional repayment mortgage in retirement.
Jean asked HFA Later Life whether there was a way to bridge the gap sensibly. There was. Using a Lifetime Mortgage for purchase. We walked her through how this works: you sell your current home, put in the available funds as your contribution to the purchase and the Lifetime Mortgage covers the shortfall on the new property. There are typically no required monthly payments, you retain ownership and the plan is repaid usually from the sale of the property after death or upon moving into long term care. We also explained the key considerations: interest roll-up if you don’t choose to make voluntary payments, how downsizing or moving again in future is handled, and the need to ensure the new property meets the lender’s criteria.
How HFA Later Life Helped Plan
The process began with an accurate budget based on realistic sale proceeds from Jean’s existing home. That shaped a shortlist of properties that both she and lenders would be comfortable with standard construction, sensible condition and a location she loved. We supported the offer stage with an Agreement in Principle so estate agents understood she was a serious, proceedable buyer.
Alongside the usual conveyancing steps, we coordinated the Lifetime Mortgage valuation and ensured Jean received independent legal advice, a standard part of the equity release process. Throughout, we revisited the “what ifs”: What if she wanted to make optional payments to limit interest roll up? What if she decided to move again in a few years? What if she wanted to add someone to live with her? Planning for these scenarios upfront meant fewer surprises later.
On completion day, Jean collected the keys to a bright two-bed bungalow ten minutes from her daughter’s house. No monthly mortgage payment; a garden just big enough to enjoy, not to manage and a living room that now hosts Sunday stories on the sofa. “I didn’t move to buy a house,” she said. “I moved to buy time.”
If you’re considering moving closer to family but the numbers don’t quite meet in the middle, purchasing with a Lifetime Mortgage could be one option to explore. It isn’t right for everyone, and it needs careful advice, but for the right person, it can unlock the move that matters.
Thinking about a move in later life?
Start with a straightforward chat at www.HFALaterLife.uk.
Important Notice:
Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.
This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be £1,500 payable at completion for equity release products.
