Case Study: How Equity Release Helped Grandparents Gift a House Deposit to Their Grandchild

At J Finance, we understand that many homeowners want to help younger family members get onto the property ladder. With house prices rising, saving for a deposit can be a huge challenge, and for many first-time buyers, a gift from family is the only way to secure a mortgage.

Here’s how we helped one couple use equity release to gift their granddaughter a deposit for her first home—without selling their own property.

Client Profile

  • Names: Peter & Margaret (Homeowners, both in their late 70s)

  • Situation: Wanted to gift their granddaughter £50,000 for her first home.

  • Challenge: Their savings were tied up, but they had a valuable home with no mortgage.

The Problem

Peter and Margaret’s granddaughter, Emma, had been saving for years but was struggling to get a big enough deposit to secure a mortgage. She needed at least £50,000 to buy her first home, but with rising rent and living costs, saving that much was proving difficult.

Peter and Margaret had the money to help her—but it was tied up in their £450,000 home, and they didn’t want to sell or downsize.

A traditional loan wasn’t an option because:

❌ They were both retired, and Margaret had very little pension income, so borrowing money through a conventional mortgage wasn’t practical due to lending criteria.
❌ They didn’t want to take money from their savings, as they needed it for their own future.
❌ They wanted a way to release funds but avoid compound interest.

That’s when they turned to J Finance to explore equity release options.

The Solution: A Lifetime Mortgage (Equity Release)

After reviewing their options, we helped Peter and Margaret arrange a Lifetime Mortgage—a type of equity release that allowed them to access cash from their home without selling it or making monthly repayments.

Equity Release Details

  • Home Value: £450,000

  • Equity Released: £50,000

  • Interest Rate: Fixed for life

  • Repayment: Peter & Margaret have chosen to make interest payments to stop compounding, and have been rewarded with a lower interest rate for doing so.

  • Inheritance Protection: A portion of the property’s value was ring-fenced to leave a legacy for their family.

This meant Peter and Margaret could gift their granddaughter the deposit she needed without financial stress.

The Result

✔️ Emma Bought Her First Home – With the £50,000 deposit, she secured a 95% mortgage and moved into her new home.
✔️ No Impact on Peter & Margaret’s Lifestyle – They kept living in their home with no monthly repayments.
✔️ Family Wealth Put to Good Use – Their property wealth helped Emma get on the housing ladder without waiting years to save.

How J Finance Helped

✅ Advised on the Right Equity Release Plan – Ensured it suited their needs and future plans.
✅ Protected Their Financial Security – Structured the loan to work for them with very little impact on their retirement income.
✅ Helped Their Granddaughter Get a Mortgage – Guided Emma on using gifted funds correctly for mortgage approval.
✅ Provided a Stress-Free Process – Managed everything from lender selection to legal support.

Could Equity Release Help You Support Your Family?

If you’re a homeowner aged 55+ and want to help your children or grandchildren onto the property ladder, equity release could be the answer.

At J Finance, we offer expert advice on Lifetime Mortgages and other equity release options, ensuring you make the best choice for your family and future.

📞 Call us today for a free consultation.
📩 Book an appointment to discuss your options.

Unlock the value in your home to support your loved ones – without selling your property.