Large interest-only mortgage for late-60s client
The Scenario
Our client was 68, coming up for retirement, and keen to buy the property he’d had his heart set on in Devon.
He was a HNW earner, his current £1.2M home in Surrey was mortgage-free, and he had other assets to draw on (rental properties, and a classic car collection).
But his age, and the term of a mortgage which would take him well beyond retirement, was going to be a challenge for lenders.
When the house he’d always wanted came on the market he approached his current bank.
They were going to want to mortgage both his Surrey home, and the house he wanted to buy: already two sets of set-up costs. But the surveyor they sent to do the valuation of the Devon property didn’t like the type of foam insulation and gave it a nil valuation. Unhelpful…
The Solution
We approached a private bank on his behalf who were willing to look at mortgaging just his current home, plus a £250K rental property he owns mortgage-free that they're not requiring a valuation on, with no charge against the next home he’s looking to buy.
Considering his age we would be looking at a mortgage with a maximum term of five years.
For a million-pound mortgage on the standard capital repayment terms he was previously offered, the monthly repayments (at 3.25% over base) for a mortgage term of five years would have been an eye-watering £18,400 a month.
A stretch for even the highest of HNW individuals.
The best option for him was going to be interest-only. At the same interest rate the monthly costs are going to be a much-more-palatable £3,330 a month, with a 1% lender’s fee.
Most importantly, we could find a mortgage for him that has no early repayment charges for the whole term of the loan. Our client is planning to have it paid off by the sale of his Surrey home.
Buying the original home he went looking for fell through, so he went looking to buy equally enticing properties with his now much more manageable finance offer.
UPDATE: In the time it took for our client to settle on an alternative West Country property he wanted to buy, his Surrey home was downvalued by £100K - as many prime rural properties have been, during continuing Brexit uncertainty.
He was already at the maximum 75% LTV any lender would consider for a loan of this size (and a borrower of his age). To make up the £75K shortfall of this kind of borrowing our client would have to liquidise some assets.
We persuaded the lender to extend over their 75% LTV. The additional £75K is on a capital repayment basis, but the repayments are still very manageable.
Simon Mullins
Finance Broker CeMAP
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Paige Dumpleton
Finance Broker CeMAP
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Jonathan Moffatt
Head of Business Finance
Cardiff
0203 880 8890
Do you need help sourcing your own business finance?
I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you.
Alex Morris
Private Client Adviser
Bristol
0117 332 5061
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Scott Dutfield
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Carly Cheeseman
Head of International
Bristol
0117 457 9922
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Nick Kerley
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Specialist Car Finance
Broker Finance Team
Bristol
0203 900 4322
Do you need help sourcing car finance?
Speak to our finance team or book a team to speak that suits you.
Book ConsultationBusiness Finance
Business Finance Broker Team
Bristol
0203 880 8890
Do you need help sourcing business finance?
We have extensive experience sourcing unsecured and secured finance for businesses. Book a free telephone consultation with our business loans broker team at a time to suit you.
Mortgages & Short Term Finance
Mortgage Broker Team
Bristol
0117 959 5094
Do you need help sourcing a UK mortgage?
We have extensive experience securing 1st and 2nd charge mortgages. Book a free telephone consultation with our mortgage broker team at a time to suit you.
7 Reasons why you should use a specialist mortgage broker »
Book ConsultationDevelopment Finance
Broker Team
Cardiff
0117 959 5094
Do you need help sourcing UK property finance?
We have extensive experience securing UK development finance. Book a free telephone consultation with our team at a time to suit you.
Expat and Foreign National Mortgages
Broker Team
Bristol
+44 203 900 4322
Do you need help sourcing UK property finance?
We have extensive experience securing UK mortgages for clients based outside the UK. Book a free telephone consultation with our team at a time to suit you.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
Get in touch today and find out how I can help.
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Book ConsultationSam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Fergus Allen
Senior Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you.
Book ConsultationJacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.
Book ConsultationJack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you.
Book ConsultationAlex Chambers
Senior Private Client Adviser
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you.
Book ConsultationLuther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Book Consultation
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.
Book Consultation