Two UK-based applicants approached Enness Global seeking to remortgage their home at approximately 18% loan-to-value (LTV). Their existing lender did not offer residential mortgages, so the clients required an alternative lender capable of considering their circumstances and the structure of the property.
The clients were in their mid-60s and were directors of an established IT software company. Their home comprised two semi-detached properties that had been combined to create a single larger residence. Although planning permission had been obtained for the works, the properties remained held under separate titles, creating additional complexity for the remortgage.
The clients required a 10-year mortgage term, which meant the borrowing would extend beyond their anticipated retirement and into their later years. Their company had also experienced a reduction in profits during the previous financial year, meaning the lender needed to take a broader view of their affordability and future financial position.
The property structure presented a further consideration. Lenders can have specific requirements when security is being provided across multiple property titles, particularly where two properties have been combined into a single residence. In this case, the lender required the clients to reinstate the dividing wall between the two properties as part of the proposed structure, providing a clear separation and an identifiable exit route if required.
Enness Global reviewed the clients’ wider financial circumstances, including anticipated pension income, savings and life policies, alongside their existing equity in the properties. Given the conservative 18% LTV, the significant equity position provided additional comfort to the lender despite the clients’ age, retirement plans and recent reduction in company profits.
Enness approached a specialist lender with experience in complex residential remortgages and presented the clients’ circumstances in full. The lender was able to take a holistic view of their future income and overall financial position rather than relying solely on the most recent company accounts.
A competitive discounted variable-rate mortgage was secured at 18% LTV, subject to lender criteria. The structure enabled the clients to replace their existing borrowing with a residential mortgage suited to their circumstances while retaining substantial equity in the property.
This case demonstrates how specialist lender selection can be particularly important where age, retirement planning, complex property structures and non-standard income profiles form part of a remortgage application. By considering the clients’ wider financial position and the substantial equity available, Enness was able to identify a lender whose criteria were better aligned with the circumstances.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise.
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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.
