*Please note, customer names and details have been altered slightly to provide anonymity*
Julia and Dave were keen to help their son, Andrew, buy his first home.
Andrew had a good job that paid well, but simply hadn't been able to save up a deposit to enable him to buy himself.
They had always planned to leave their estate to Andrew but thought that the money would be more useful to him now, rather than waiting for them to pass.
They sought advice from an equity release adviser, who talked through all their options with them. They didn't want to downsize and liked the area in which they lived, but were keen to release some equity from their unencumbered property to help Andrew.
They were concerned about how the interest might roll up and affect the total amount they could finally leave to Andrew when they died.
Their adviser suggested that they could make interest payments to ensure the level of the loan secured against their property didn't increase.
Julia and Dave only had state pensions and so couldn't afford to do, but Andrew offered to pay the interest. This enabled him to get the money he needed up front to purchase a home, whilst protecting the rest of his inheritance that he'd receive when mum and dad died.
As he had a good job, it was easy for Andrew to maintain his mortgage repayments on his own property, plus the interest repayments on the equity release loan.
Dave and Julia were delighted that they could help their son and see him in a property of his own.