Our clients were retired doctors who were looking to move closer to their daughter. They had recently had a bid accepted on a property on the proviso that they were able to exchange within 14 days. The clients required £150,000 to complete the purchase. They could withdraw the money from their investments, but this would incur significant early exit penalties. The clients were open to renting out their current residence and raising a Let to Buy mortgage to raise the £150k. However, they were aged over 70 and ideally, they wanted a deal with no early repayment charges so that they could clear the balance when they had sufficient funds
The clients were able to raise £150,000 against their current residence on the basis that it would be rented out. The mortgage was secured on a mortgage on a variable rate of less than 2% with no early repayment charges. The case was completed from application to offer in just 6 days.
The client faced several issues. Firstly, not all banks allow let to buy applications. That is where a mortgage is raised on a client’s current residence which will then be rented out.
Secondly, those banks that do offer Let to Buy Mortgages rarely offer deals with no early repayment charges.
“Our contacts at the bank ensured that the case was escalated due to the imminent exchange date.”
Finally, many banks have a maximum age of 70 at the time of application. Only one bank in the UK was able to offer a deal that met all the clients’ requirements.
Our role as the broker was twofold. Firstly, to identify the bank immediately so that an application could be made the same day.
Secondly, we ensured that the case was packaged correctly so that all the required documentation was submitted on the application. Our contacts at the bank ensured that the case was escalated due to the imminent exchange date and the offer was produced in less than 7 days.
The clients were delighted to not only secure a mortgage within the required timescale, but also to have secured such a low mortgage rate with full flexibility.
