I recently helped a client who was looking to raise capital against his existing London property which was worth £450,000, in order to pay off the mortgage on a chalet he owned in France. There were a few problems standing in my client’s way, however, the first being that neither he nor his wife were working so all his income came from pensions. He was also 69 years old and looking for as long a term as possible to spread out the repayments.
It was no surprise that this case was considered problematic to pretty much every high street lender, as the majority would be unwilling to fund paying off the mortgage on his holiday home due to his lack of income. Additionally, most high street lenders use lower lending age limits, which have the potential to restrict the length of term available for an older borrower such as my client. Finding a mortgage for an older borrower has become notoriously difficult, and something that many are trying to produce a solution for more recently.
Luckily, that’s where we at Enness came in. With our extensive contacts across the market, we have worked with many older clients to source the most beneficial option available to them. As such, I knew we would be able to source the right lender and help my client find the best solution available for his circumstances.
After contacting multiple lenders with no luck, I was eventually able to secure an offer from a building society that was willing to accept the application. This was predominantly due to the other properties my client had in the background, of which he was able to use as security. Not only this, we were also able to obtain a very impressive 17 year term, which would take my client well into his 80s!
I managed to secure a 2.79% discounted rate at 65% loan to value (LTV) on an interest only basis. This was a great result for my client to pay off his loan on an extremely lengthy term, ensuring he had peace of mind that the repayments would be as affordable as possible.