Mortgages for pensioners are particularly tricky to secure. Add in the fact that my two married, retired clients aged 74 and 76 derive their income from overseas and hopefully you will be impressed by the outcome of this scenario!
These clients lived in Baker Street in a flat worth £1.35 million, on which they had borrowed £250,000. They were from overseas and their income came from their home country. Not only was it in their native currency but from pensions and investments, as is typically the case regarding mortgages for pensioners.
Although my clients had a relationship with a private bank, who currently provided their mortgage, the bank was pushing my clients out by offering them rates impossible to sustain.
Their preference was for an interest only remortgage at as competitive a rate as I could source. Sourcing interest only mortgages for pensioners is not easy as most lenders will not extend that option to them as they are increasingly unlikely to be able to clear the debt. On top of this a lot of lenders have issues with overseas income, even from countries many would not expect – like America. The majority of ex-pat rates are at least 5% which was unsustainable so I had to work against this.
There are a couple of building societies relatively open to mortgages for the elderly. I spoke about the context of my client’s situation to an underwriter who I work closely with and secured a specialised rate that wasn’t generally available yet.
Throughout this entire process the husband of my client was going through back problems and was undergoing surgery. This meant I needed to arrange home visits from the underwriter and manoeuvred the mortgage so it fitted in with their preferred time scales.
I managed to secure my client a cheaper rate than he was on before, with a 9 year term to coincide with maturing investments so they had the right funds in place to repay.
The final rate was 3.69%.