The Intermediary – July 2025 - Flipbook - Page 28
T H E I N T E RV I E W
Pure Retirement
Case Study One
A working couple aged 60 and
58, with a current house value of
£500,000, require £50,000 with a
payment plan in order to financially
support their son to avoid taking
out student loans. ey want to
explore voluntary repayments, as
they’re not planning to retire for
several years.
With a Classic lifetime mortgage,
they can make a maximum of 12
payments, up to 10% of the initial
release per year, ERC-free up to
£5,000 per year. ey release
£50,000 at 5.83% interest and opt
to repay £292 per month.
Case Study Two
A client aged 80 has a property
value of £3m, and requires £1.4m
to buy a second property on the
coast. He may decide to move
there in the future, with the
properties, demographics and client needs
forming this market, means Pure Retirement is
also able to spot trends and understand where
a deeper level of product innovation is needed.
Broker’s role
For brokers tackling this changing and
increasingly important product set, Hancock
says the quality of information on the
front-end is a vital component to creating a
successful deal.
He says: “We find that the biggest reasons
for delays we have is either incomplete or
unclear information.
“If a broker can fully paint the picture within
the application form, an underwriter should
just be able to put a frame on it.”
Pure Retirement’s pre-application service,
he adds, has helped to weed out many of these
issues before the process is even started.
Hancock says: “With the full story, an
underwriter is going to be able to make an
informed decision that really reflects the
client’s situation. We know that brokers are
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The Intermediary | July 2025
option of either repaying the loan
or porting the lifetime mortgage
to the coastal house. An Emerald
lifetime mortgage releases up to
47% (£1.41m) based on his age and
property value.
Case Study Three
A couple aged 77 and 81 have a
property valued at £1.5m. ey face
some health concerns and need
£640,000 to fund home carers
and equipment for a minimum
of 15 years. ey release three
years’ worth of funds for peace of
mind and require an initial sum of
£128,000. e remaining monies
will be held in reserve with the
lender for them to access when
they need it. e couple opt for an
Emerald lifetime mortgage at 43.2%
LTV, with a drawdown plan whereby
interest will only apply to the funds
drawn at the time of withdrawal.
very busy people, but all of this will help speed
the process down the line and mean we don’t
have to clog up their inbox.
“Using the pre-application service means
having an application form vetted. I’d urge
brokers to take full advantage of the expertise
available to them in order to get a more robust
sense of the decision before even sending in
the application.”
This is also important for those cases that do
not go through, saving the broker time going
through the full process only to be turned down
on something where there is no wiggle room,
such as flood risk, and instead getting to that
point earlier and with less pain.
While there are some of these “black and
white” factors, Hancock also urges brokers
to remember that Pure Retirement’s focus on
fringe and “quirky” propositions means there
are clients they might assume cannot be helped
who have options available to them.
At a time when brokers are trying to shore
up their own business models, this should help
them avoid turning clients away.
