- Client: UK National and Resident
- Property Value: Above £2.5 million
- Loan Amount: Circa £2 million
- Purpose: Remortgage and capital raising
Enness was approached by existing clients whose residential mortgage was approaching the end of its term. Alongside refinancing the existing borrowing, the clients wanted to raise additional capital to support an ongoing property development project in which they were involved.
Since arranging the clients’ previous mortgage, one of them had experienced a significant change in circumstances. This narrowed the number of lenders that could consider the application and had a direct impact on the level of borrowing they could support.
Time was another important factor. With the existing mortgage product due to expire shortly, the clients needed a new facility arranged without unnecessary delay. The challenge was therefore to find a lender that could understand the change in circumstances while also working within the tight deadline.
Enness reviewed the clients’ updated position and approached lenders with the flexibility to consider the wider circumstances rather than relying solely on a standard assessment. We identified a lender that was comfortable with the clients’ requirements and prepared to take a pragmatic approach to other aspects of their financial background.
The lender also provided a priority underwriting service, allowing the application to be assessed quickly. A full mortgage offer was produced within a couple of days of submission, giving the clients confidence that the refinance could be completed before their existing product expired.
The final structure also provided an attractive LTV and repayment strategy, giving the clients the flexibility they needed while allowing them to release capital towards their development project.
The case highlights the value of reviewing a mortgage when circumstances have changed, particularly where an existing product is approaching expiry. A lender that was suitable previously may not necessarily be the right fit for a borrower’s current position, making careful lender selection particularly important when time is limited.
Enness has experience arranging residential mortgages for clients with complex financial circumstances, including remortgages and capital raising. If you or your clients are approaching the end of an existing mortgage and circumstances have changed, speak to a mortgage specialist to discuss your options.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, affordability, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
