We were approached by a long-standing client who owned a buy-to-let property in London. He wanted to “convert” the mortgage facility from buy-to-let to residential so that he could use the property as a working home for when he was in the city on business.
However, high interest rates were proving to be a stumbling block so he contacted us to see if we could source a solution.
We secured a “part and part” mortgage with the majority of lending on an interest only basis. The lender offered terms that were far superior to any other option in the marketplace which resulted in manageable payments for the client.
Our client had very specific requirements that few lenders could accommodate. Firstly, he had both employed and self-employed income and to ensure that the deal fitted affordability, we ideally needed a lender who could consider his profit before tax in relation to his self-employed earnings.
Secondly, we needed a lender who could offer generous interest-only terms as the client was 59 years old and a full capital and repayment mortgage would be too expensive in terms of monthly cost when combined with his primary mortgage payment on his main residence.
The key to securing terms wasour access to the whole of the market and strong relationships with the various specialist lenders that operate in this sector. One such bank could consider an 80% facility with 75% on an interest only. Furthermore, they did not require any minimum equity amount in the security at point of application.
Finally, the lender was happy to lend up to the age of 80 meaning we could secure a 20-year mortgage term for the client – almost every other lender in the marketplace would only lend up to age 70 when any portion of the borrowing is on interest only.
We secured a mortgage offer with terms that, at the outset, seemed too good to be true. The client is extremely satisfied and can now focus on running his business.
We look forward to working together in the future.
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