Meet John

John, 78, has watched his only grandchild grow up, and is proud that she is working in a good job in London. He has seen that she is struggling to save each month, as she spends what she earns on day to day living. He wants to gift her some money while she needs it, and decides to help her raise a deposit for a flat. He goes to see his financial adviser to find out the options available to him.
John remembers when his granddaughter was born and can’t believe she’s now grown up, living and working in London. 

When he speaks to her, he realises that she can’t afford to save very much from her income each month. He’s always wanted to leave her an inheritance, and as his only grandchild he had intended to leave her his home in his will. After speaking to her and hearing about how little she’s able to save each month, he decides that he wants to give her an inheritance now – when she most needs it.

John decides to visit a financial adviser, who reviews his income and expenditure. The financial adviser can see that John spends all of his income each month, so he recommends an interest roll-up lifetime mortgage. During his review, the financial adviser also notices that John doesn’t have a lot in savings and is worried about needing some more capital later down the line. Because of this, he also recommends that John adds a cash reserve facility to the lifetime mortgage. This means that a set amount of money is available to John in the future, which he can access without taking advice. So, if he needs a lump sum later on, he can make a withdrawal without incurring more costs.

John was happy with this as he was able to see his granddaughter enjoy her inheritance at a time when she most needed it, and he also has an emergency fund which he can choose to access if he needs to.