Interest only remortgage for older couple to repay debts after home renovation

A married couple in their 70’s approached us looking to remortgage and raise capital on their home. They needed £170k to repay a first charge and some unsecured debts they had accrued from renovating the property.

There were a few challenges with this case, which restricted the number of finance options available:

• The couple are in their 70’s which excludes some high street lenders
• They wanted interest only terms which is not widely available
• Their income is from two sources - pension and rental income from their only buy to let property

We approached a lender which we know will consider all these terms and underwrites applications manually. The lender issued a formal mortgage offer just one month after the application was submitted and we are now managing the application through to completion, keeping in touch with all parties to ensure that every stage remains on track for completing in January 2018. 

Here are the details of the deal:

Property Details

Property value: £230,000

Loan amount: £172,500

LTV: 75%

Rate: 3.15% 5 year fixed

Term: 10 years interest only

Lender arrangement fee: £999

Mortgage payment: £455pcm

Consultant: Erin Gallacher, 01625 416 392

19th December 2017