Lifetime mortgages could provide a solution
Worried about the rising prices of day-to-day items
UK consumers are feeling the pinch of our outgoings getting ever higher. The increased costs for food and energy bills, more commuting costs as many return to the office, plus increased socialising have started to bite
Most people’s supermarket spend also increased from last quarter as food prices rose. These increases in outgoings are likely to be the reason why we’ve seen fewer saving money this quarter.
Increased inflation concerns
Rising prices are becoming a key concern for consumers (source: LV+ 2021 Wealth & Wellbeing report), 27% of UK adults say they are worried about the rising costs of day to day items such as food and clothing.
Research shows that a third of people aged 65+ have debts that may be challenging to pay off on a retirement income. Some people approaching retirement are still struggling with debts.
Half (49%) of 55-64 year olds have obligations that could make saving for their retirement harder, and 32% of those aged 65+ have debts that may be difficult to pay off on a retirement income. One in ten mass affluent consumers appear to have taken on debt to fund their lifestyle (e.g. car finance/store cards). Whilst they may currently have the means to make repayments, they could become vulnerable in unexpected circumstances (e.g. job loss)
- Drawdown lifetime mortgages allow customers to supplement their income to help manage the rising cost of living
- Most offer a flexible reserve available to suit clients’ requirements, allowing withdrawals from a pre-agreed reserve
- Withdrawals can be monthly to help with management of your day-to-day expenditure and cope with the unexpected.
- While it won’t necessarily be suitable for everyone, consolidation of debts via a lifetime mortgage may create some financial breathing space and free up disposable income
- Aspen is a full advice Independent adviser and we will discuss all options with you, and where relevant help you understand all your options with debt repayments. We find that many families would like to be involved in the early stages and we often meet with family units to help everyone understand the process.
- This can be particularly valuable where elderly parents are borrowing and would like the confidence of other close friends or family in the meetings