Pilot’s Pension Powers Interest Only Mortgage For Berkshire Home

Area
Berkshire
Capital Raised
£700K

Well-connected brokers don’t take No for an answer,. Looking closely at every lending criteria can make the sums add up for both lender and client.

The Scenario

Our client was 64 year-old airline pilot whose 25-year interest-only mortgage on his substantial Berkshire home was coming to the end of term. He wanted to remortgage interest-only, planning to downsize in two years’ time, after two of his children had finished university.

He had an outstanding mortgage of £525K on the house which was now valued at £1.4M, but he faced two significant issues: age and equity.

Most high-street banks are unwilling to grant interest-only mortgages to borrowers of his age, because of capital repayment concerns.

And because he had been on an interest-only mortgage he hadn’t built up the required equity in his property, despite its increase in value.

Lenders need to feel confident that borrowers will be able to repay the outstanding capital sum. Most require that the borrower has at least 50% equity in the property.  

The Solution

Discussions revealed that our client had been paying discretionary earnings into British Airways’ generous pension scheme. He had started his career flying for the airline 37 years previously and had built up a pension pot which would yield £71K a year.

We persuaded our lender to use our client’s substantial pension savings to offset the shortfall in equity and the terms were agreed within 18 days.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

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.

Alex Chambers

Senior Finance Broker

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.

Luther 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. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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