Have you considered funding home renovations by remortgaging? This can be a very economical route to use. Remortgaging allows you to release equity towards home improvements at low interest rates.
To discuss this or any other large mortgage case, please contact us.
Case profile
Our clients were looking to remortgage their £2.5M home and raise additional funds for home improvements. We assessed the maximum borrowing threshold and included it in their remortgage application.
The sole earner had no track record of earnings in his current position due to recently changing jobs. However, he could demonstrate a strong history of high salaries working in the same industry, providing lenders with some level of comfort.
Our clients sought an interest-only mortgage to help match cash flow effectively. To further complicate the case, the property in question had an atypical setup due to two outbuildings being rented out as holiday lets. Few lenders are happy with this.
Solution
We utilised our relationships with the handful of lenders suited to our clients’ profile and requirements and contacted them to compare rates and terms. To strengthen our clients’ case, we highlighted their extensive experience within the same industry, using their CV alongside historical income documents to demonstrate similar earnings within their previous roles. We also obtained a letter from the Financial Director to confirm our client’s new income.
A private bank was willing to offer £1.25m, providing our client with a loan-to-value of 50%. This was ideal as it provided the funds, they wanted for the home improvements. The bank provided the mortgage on an interest-only basis at a low fixed rate over five years. As usual with fixed rates, there were early repayment charges, which was fine for our client as he had no intentions to move home in the next 5 years. Their long-term plan was to use profits accrued from some holiday let properties alongside their pension to repay the mortgage and downsize to a smaller home in retirement.
To discuss this or any other large mortgage case, please contact us.
