I was recently approached by a client Enness had helped before, who was an older borrower looking to remortgage his family home. His current mortgage term was due to expire and the lender was calling in the loan.
My client was a gentleman in his 70s who had not long since returned to the UK after a number of years living overseas, which can pose a problem when applying for finance. The property in question was a Grade II listed house in Dorset, worth £3.25million, and he lived there with his partner and child. My client required an interest-only loan, with the intention to use the sale of the property as an exit strategy.
The client’s age was also an obstacle, since many high street lenders prefer not to lend to older borrowers. Furthermore, he had a complex income stream, including rental from buy to let investment properties, a pension, as well as income from commercial property tenants. He was also developing property overseas.
Despite these challenges, I was able to go to a private bank who I knew would be willing to take my client’s entire circumstance into account. Private banks are much more flexible, so if you are an older borrower looking for a large loan, you should definitely consider this as an option. I knew a face to face meeting would ensure my client secured the best solution so this was arranged and pricing was agreed in person.
I was able to secure them a fixed rate of 3.06% on an interest only basis over a five-year term. Given his age, I was also able to work with the bank on ‘Legacy Planning’, ensuring a financial strategy was in place should the property become bequeathed to another family member. This was an excellent example of how we can find solutions for clients seeking mortgages in their seventies and beyond.