Lockdown Remortgage with Later Life Lending

The Client: An experienced landlord who, now semi-retired, had two buy to let properties remaining in her portfolio.

The Property: A one-bedroomed garden flat located in a desirable area of West London.

The Finance: the client’s existing mortgage on the property was about to expire and, as she didn’t want to try and sell in the current market, she had decided to remortgage the property.

The Challenge: Although semi-retired, the client was in her mid-seventies and wanted a mortgage term which would give her additional wriggle room to decide when to sell the property and repay all the borrowing. We needed to find a lender that would lend up to at least the age of 85, narrowing our choice in the buy to let mortgage market.

The Solution: We set about researching buy to let lenders which would lend to applicants over the age of 80, and although there aren’t very many, we were able to source a competitive mortgage rate for our client. Having collected all the relevant documentation from her at the beginning of the process, we were able to quickly submit an initial Decision in Principle (DIP) application. Even though the client was keeping her level of borrowing on the property the same, making it a fairly straight forward like-for-like remortgage, we were expecting the COVID-19 situation to slow down the lender processes. Much to ours and the client’s surprise, the formal mortgage offer returned within four working days, and everything had completed less than three weeks later! Here are the details:

Property Details

Property value: £550,000

Loan amount: £240,000

LTV: 44%

Rate: 1.99% 5-year fixed

Term: 9 years interest-only

Mortgage payment: £398 per calendar month

Lender arrangement fee: £995

Rental income: £1,900 per calendar month

Gross yield: 4.14% pa

Application: Individual

Consultant: Chris Longhurst, 01732 471607

22nd July 2020