A pensioner was decreased to tears as he confronted dropping his household dwelling after his mortgage repayments soared this 12 months.

Philip Jenner, 70, "couldn't see a way forward" for the Gloucestershie property that he shares together with his spouse and 11-year-old daughter. 

He took out his mortgage in 2010 and had struggled to make the rising repayments since January 2023, with a stability then of £60,000.

The dad, from Quedgeley, stated: “I was in tears on many occasions and could not see a way forward.”

With an rate of interest of 6.77 %, he confronted the prospect of his repayments leaping up from £533 a month to £1,666 a month.

This included a compensation plan for developer Taylor Wimpey, and he had fallen brief for the funds for this.

He tried to increase the time period on the mortgage to slash the tripled funds however he was advised he must purchase out Taylor Wimpey first.

He then determined to try to use fairness launch on his property to unlock additional funds to cowl the hovering payments.

The home-owner was turned down by the primary fairness launch brokers however was then put in contact with Ian Akeroyd, an adviser with 55Plus, who accomplished the scheme in July.

Mr Jenner was capable of launch £65,000 and paid off his remaining curiosity and end his mortgage repayments and retain the household dwelling.

He stated: “There are many like me, who have found themselves in a difficult position, with many brokers turning us down due to being in complicated situations.

“I was very lucky to have found Mr Akeroyd at 55Plus, who spent considerable time working out what was best suited in my circumstances.”

He has the flexibleness to pay as a lot as he desires for the following 15 years so he has respiratory house to handle his monetary wants.

Mr Jenner added: “I feel the banks are not pulling their weight to help with the mortgage rate crisis. I know they’re not charities, but some support would have been appreciated.”

Advisers at 55Plus have seen fairness launch instances quickly improve this 12 months as householders over the age of 55 search for methods to sort out hovering mortgage repayments.

Jan Johnson, founder and director of 55Plus, stated: “After more than a decade of residential rates at 0.75 percent or below, this has left many homeowners whose fixed deals are ending, and those on tracker mortgages, facing huge blows to their finances and even losing their homes as a result.

“We urge all homeowners over 55 to look at all options available to them. Expectations that borrowing costs might rise even further has pushed up mortgage rates.

“This month, the average residential rate on a two-year fixed deal hit a 15 year high of 6.66 percent.”

Speaking beforehand to Express.co.uk, Rudy Khaitan, managing associate of Senior Capital, spoke about the advantages of equity release for older householders.

He stated: “The right equity release mortgage product, particularly those that offer the greatest flexibility through limited prepayment penalties, can be the better option vs a more traditional mortgage when you want to unlock the value in your home without taking on additional monthly repayments.

“It allows homeowners to access the equity built up in their property, providing a tax-free lump sum to supplement regular income, whilst still retaining ownership and the right to live in their home for life or until they move into long-term care.”

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