Later Life Lending Solution

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Later life lending solution accommodates growing family

Are you retired and looking for a later life loan? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.

Case Profile

As the years advance, many people expect they will downsize their homes in order to release equity and reduce maintenance costs. However, many people find they’re bucking that trend and, instead of their families flying the nest, they’re actually remaining – or returning – home to live with their parents and grandparents.

According to the Office for National Statistics, households containing two or more families (multi-family households) were the fastest growing UK household type, up 41% over the decade to 2017. These homes are usually signified by two generations of the same family living together under the same roof.

Our clients were typical of this trend, having found that they needed to upsize their home in later life to accommodate their growing family of children and grandchildren. The clients wanted a mortgage term of 20 years, which would see the capital repaid at the age of 85.

The couple had a secure financial position and the lending proposal met affordability criteria, based on their retirement income. However, the clients were based offshore and the jurisdiction in which they live has very few lenders willing to consider borrowers over the age of 65.

Solution

As specialists in later life lending, we have close relationships with a specific provider in this jurisdiction. Therefore we had the knowledge and network to call upon to help them secure the necessary funding.

From our point of view, the clients’ income and age were a positive factor in their application. We put forward the case in the best possible light and brokered a capital repayment mortgage that would be repaid before the clients’ 85th birthday.

Our clients were able to purchase their large property and bring their family together under one roof, securing a stable home for future generations.

Deal Highlights

Loan amount:£250,000
Rate:3.69% fixed rate for 5 years
APRC:Overall cost for comparison 4.5% APRC representative variable
LTV:30%
Term:20 years
Type:Capital Repayment
Loan purpose:Residential Purchase
Lender’s arrangement fee:£999
Early repayment charge:5% in the first year, reducing by 1% each year

 

Notes

This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.

Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.

Overall cost for comparison 4.5% APRC representative variable based on 64 payments at a fixed rate of 3.69%, followed by 176 payments at the lenders variable rate, currently 4.79%. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes.  For example, if the interest rate rose to 11.79%, the APRC could increase to 12.8%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.

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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.  

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