Later life lending made easy with largemortgageloans.com

By the end of 2019, the later life lending market is expected to be valued at £295 billion and it’s estimated that will rise to £548 billion by 2029, representing an 85% increase over a decade [i].

Why such growth? Well, we are all living longer and property prices are higher decade-on-decade. The mainstream mortgage market has changed significantly to cater for this audience, meaning there are more products available and these can sometimes be of help to our clients. However, our focus on finding bespoke solutions means that the majority of our large, later life mortgages are negotiated through the private bank sector.

Case profile

Our recent case was a perfect example of this. Our clients were in their late 70s and early 80s with a home valued at £10m. Their existing £2.5m facility was coming to an end and the private bank they had worked with was looking for the clients to repay the mortgage due to their age.

The clients did not only wish to renew this £2.5m mortgage, they were also seeking to raise an additional £2m to fund the property’s upkeep and their living expenses. Their income was modest in relation to the size of the loan they were seeking and most lifetime mortgage lenders will only offer a maximum amount of £3m or 30% of the value of the property

Solution

It wasn’t a straightforward case to resolve. However, our relationships with decision makers meant that we were able to identify a private bank who were open to the case and negotiate a Lifetime Mortgage to suit all of our client’s requirements

Deal Highlights

Loan amount:
£4,500,000
Rate:
Fixed lifetime rate of 5.32%
Loan To Value:45%
APRC:Overall cost for comparison 5.50% APRC representative variable
Term:Lifetime mortgage
Type:Interest roll up
Loan purpose:Remortgage
Lenders arrangement fee:None
Early repayment charge:
10% of the amount repaid in the first 5 years, reducing to 5% for the following 5 years

[i] https://www.mortgagefinancegazette.com/lending-news/equity-release/later-life-lending-will-double-10-years-25-06-2019/

The overall cost for comparison is 5.50% APRC representative variable based on monthly payments at the lenders fixed rate of 5.32% for the life of the mortgage.

A lifetime mortgage is a loan secured against your home. Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up the repayments on your mortgage.

Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits. Home reversion plans and lifetime mortgages are complex products. To understand the features and risks, ask for a personalised illustration. If you are in doubt, seek independent legal and financial advice. 

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Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: www.fca.org.uk.  The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending.  

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.  

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.