An existing Enness client approached the firm seeking to remortgage a family home after the existing mortgage term was approaching expiry. The lender was seeking repayment of the outstanding borrowing, creating a requirement for a new financing structure.
The property was a Grade II listed house in Dorset valued at approximately £3.25 million. The client had recently returned to the UK after spending a period living overseas and required an interest-only mortgage, with the intended repayment strategy involving the future sale of the property.
The client’s circumstances presented several lending considerations. Their age restricted the number of mainstream lenders willing to consider the application, while their income was derived from several sources, including rental income from buy-to-let properties, pension income and income generated from commercial property. The client also had property development interests overseas.
OUR SOLUTION
Enness approached a private bank experienced in assessing complex high-value mortgage applications and older borrowers. The client’s wider financial position, income sources, property assets and proposed repayment strategy were presented to the lender as part of the overall underwriting assessment.
The lender was able to consider the application on an individual basis and provide an interest-only facility over a five-year term. The structure incorporated the client’s proposed property sale as part of the repayment strategy, subject to the lender’s requirements and ongoing suitability.
The facility enabled the client to refinance the existing borrowing while retaining the family property and providing a defined route towards eventual repayment.
This case demonstrates how specialist private-bank lending can provide an alternative for older borrowers with complex income structures and high-value property assets. Careful consideration of the borrower’s wider financial position and proposed repayment strategy can be particularly important where standard lending criteria may not accommodate 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, 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.
