Securing finance for older borrowers can be challenging, particularly where mainstream lenders apply strict age and affordability criteria. I recently assisted a married couple aged 81 and 72 who were looking to refinance an existing facility while raising additional capital.
The couple wanted to repay their existing £100,000 facility and raise a further £100,000. The additional funds were intended to help finance the purchase of a new Porsche, adding to the client’s existing collection of sports cars. They wanted the borrowing structured on an interest-only mortgage over a 10-year term.
Age was the main consideration when assessing the application. Many mainstream lenders have strict maximum age criteria and can be reluctant to consider borrowers in their seventies or eighties. The couple’s circumstances therefore required a lender willing to take a broader view of their overall financial position.
OUR SOLUTION
I reviewed the client’s wider financial circumstances and established that they had accumulated significant investment holdings over many years. Although the client did not want to sell these investments to fund the purchase, they provided important context around the couple’s overall wealth and financial position.
Using this information, I approached a number of smaller building societies that were more comfortable taking an individual approach to older borrowers. I identified a lender willing to consider the application based on the wider circumstances rather than relying solely on standard high-street lending criteria.
The resulting facility provided £200,000 of borrowing on an interest-only basis over a 10-year term. The structure also included no early repayment charges (ERCs), giving the client flexibility to reduce the balance during the term without incurring additional penalties.
The additional borrowing provided the funds required for the planned purchase of the Porsche while allowing the clients to retain their existing investment portfolio. The case demonstrates how specialist lender access can be valuable for older borrowers whose circumstances fall outside the standard criteria of mainstream banks.
For clients looking to finance a prestige vehicle, specialist supercar finance can also provide tailored borrowing options depending on the vehicle, borrower profile and proposed structure.
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, LTVs 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.
