Name: Mr & Mrs Jones
Age: 72 & 74
Mortgage: Retirement Mortgage

Mr & Mrs Jones: Retired professions looking to borrow into retirement

Mr and Mrs Jones are retired headteachers, although Mr Jones still enjoys teaching on a part time basis.

Having each worked in the teaching profession for over 30 years they benefit from a generous defined benefit occupational pension. This increases each year in line with inflation and provides a 66% dependent’s benefit on death.

Around 10 years ago they took out a mortgage and some personal loans in order to purchase a property to suit their needs in retirement. Although they’ve maintained their repayments they’ve approached their adviser as they need additional funds for some home improvements. They’d like to explore their options on re-financing, as recent rises in the cost of living have started to each into their remaining disposable income.

Mr Jones Mrs Jones
Age 72 74
Salary £8,791 per annum £8,684 per annum
Teachers’ Pension £18,636 per annum £16,776 per annum
Part-time Salary £15,200 per annum No applicable

A Retirement Mortgage of £155,000 would reduce the cost of Mr and Mrs Jones’ existing borrowing and fund the home improvements required.

This is a lifetime mortgage. It’s important your client understands the features and risks so provide a personalised illustration. The home may be repossessed if repayments are not kept up on the mortgage.

The Retirement Mortgage is a lifetime mortgage meaning that the capital does not have to be repaid until death or until the mortgagee(s) enter into long term care. It has been designed as a flexible way of borrowing into retirement of those with retirement income who wish to repay the monthly interest.


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