Our clients were aged 61 and 62 and were looking to refinance a £270k mortgage on their residence, which was worth £2m. They owned a portfolio of 10 buy to let properties, worth £4m and with total debt of £2m.
One of the tenants of their properties had not paid a service fee which, unbeknown to the client, had resulted in a court judgment being registered against them. Their mortgage had reverted to a variable rate of 4.74% and the clients were struggling to secure a new deal.
We approached a small provincial building society, who would be able to assess and underwrite the case with a degree of flexibility that would not have been possible with a larger lender. This method enabled us to secure the funding.
“The new deal will save our clients more than £19,000 over the next 2 years”
The interest only element was covered by using the free equity in our clients’ portfolio as collateral. The lender was happy to take all of their earnings into consideration, and we successfully appealed that the debt issue was out of character and was rectified the moment they became aware of the issue, so it was disregarded.
Despite the adverse credit on file, we were able to secure the full £270k required, on a 13 year term and on an interest only basis. The new deal is charged at 1.15% and will save our clients more than £19,000 over the next 2 years.
We were also able to secure a term up to the age of 75, as we were able to argue that there was no impediment to our clients maintaining their income level up to this age.
