Perhaps you’re looking to downsize and need advice?
Read on to see how we negotiated a customised £8m remortgage solution for a wealthy retired couple looking to downsize.
Case Profile
Our clients, a retired couple, found themselves facing a difficult situation when their mortgage term came to an end. Their existing lender required them to put their property on the market to sell, as they were planning to downsize. Unfortunately, due to market volatility, they struggled to attract the right buyers for their property.
Wanting to remove the property from the market, the couple planned to carry out small renovations and postpone the sale until conditions improved. However, their retirement status meant that their mortgage would equate to around 23 times their income, making it difficult for them to secure the necessary funds.
Solution
After assessing the clients’ unique circumstances, we approached a bank that considered their overall wealth, which amounted to over £20 million in land and property assets. The bank understood that the couple’s lifestyle expenses were well-covered by their substantial wealth, and their background assets would mean they’d have no problem repaying the debt.
The bank offered a customised remortgage onto an interest only, market leading fixed rate, with a term of three years. The value of the loan needed was £8m and we were able to negotiate an LTV of 60% which helped when it came to securing a competitive rate.
The new arrangement meant that our clients could repay their existing lender and roll up the interest over the term. The couple had no mortgage payments to make during the term and they had the flexibility and breathing space to take their property off the market, carry out the necessary renovations, and then sell their property and downsize when the housing market picked up.
The profit from the sale could then be used to repay the capital on the loan at the end of the three year term.
Conclusion
This case study demonstrates how our team’s expertise and commitment to finding tailored solutions can help clients overcome challenging mortgage situations. By considering the clients’ overall wealth and unique circumstances, we was able to secure a mortgage solution that provided them with the financial flexibility they needed to manage their property sale and downsize at their own pace.
If you are facing a mortgage dilemma, we are here to help. Contact us today and, together, we will find you the best solution for your unique needs.
DID YOU KNOW… we are on social media! Check out our series of useful videos and blogs by clicking on the thumbnails.
