Capital raising by pensioners for home improvements

The clients are a retired married couple with just their pension as income. They had purchased their 4-bed, detached family home back in 2005 and only had a small percentage left to pay on their mortgage. 

They were looking to modernise their home, so wanted to raise £130k against the property for home improvements, but were keen to keep their repayments down. 

The main challenge was to find a lender who would accept just their pensions as income and let the couple continue to pay off the mortgage until the age of 75.

Fortunately we found a lender who could help and offer a three year fixed rate at just 2.19%. 

Here are the details of the deal:

Property value: £500,000

Loan amount: £130,000

LTV: 26%

Rate: 2.19% 3 year fixed

Term: 10 years

Mortgage payments: £1,207 pcm

Lender arrangement fee: £995

Completion date: March 2015

Consultant: Andy McOwat

Tel: 01625 416396

17th April 2015