Future-proofing your finances and your home
How Olivia used her home’s value to ditch the mortgage, top up her pension and splash out on some new sash windows.
61-year-old Olivia (not her real name*) lives alone in a charming Victorian red brick terrace house in South Central Dublin – a place she’s called home for 23 years.
Built at the turn of the last century, the house has plenty of genuine period character. But the years have taken their toll and the once grand house was starting to show it’s age, especially the original sash windows, which had become draughty and were in dire need of replacing.
At the same time, Olivia had started to think more seriously about her financial future. She still had some mortgage outstanding on the house and was also considering whether she should top up her pension pot.
She decided to let the house pay for the loan and took just over 11% of its value, providing enough money to pay down her mortgage, add a lump sum to her pension and to bring her beautiful sash windows into the 21st century.
She says, “I knew exactly what I was doing. I understand how the loan works, and there’s nothing about it that bothers me. I know I can choose to make repayments if I want to, and I’ll probably do that in time.”
For Olivia, the choice was clear: “Ultimately, I need to look after myself and be comfortable – and why shouldn’t my house help me do that?”
* True customer case studies using fictional names