Thousands of people approaching the end of their loan terms struggle to pass the mortgage criteria in a post-pandemic landscape, preventing them from extending their mortgage. While some homeowners may afford the repayments, demonstrating eligibility for a remortgage can be difficult due to traditional bank’s stringent affordability criteria. Therefore, it’s always best to seek professional advice to find solutions to enable the homeowner’s flexibility and preferential lending terms.
There are alternative ways for homeowners to structure their finances. At largemortgageloans.com, we help homeowners explore a range of refinancing options to find a solution best suited to their needs and requirements. Investments actively managed approaching or during retirement to generate income will help clients “design and build” a retirement plan.
As you approach retirement, day-to-day living expenses vastly decrease, changing your financial profile, thus requiring a change of approach to how your finances and mortgage loan terms are structured.
Case profile
We were approached by a semi-retired client approaching the end of their mortgage terms, which they wanted to extend. Due to not demonstrating sufficient income for affordability, our client initially found that extending his mortgage terms was not feasible. There were two layers of complexity with our client’s eligibility for a loan. The first being that our clients’ income was made from investments, and the second was that their income was mainly paid in Euros, which came from private companies into which the client has invested.
Solution
We managed to restructure the client’s debt and raise additional borrowing on the client’s Buy to let property, reducing the rate significantly and allowing him to redeem the mortgage, leaving his primary residence unencumbered.
We managed to secure preferential loan terms, extending it for 25 years, at which point our client would be 88 and fully retired, and his outgoings would be vastly reduced. The outstanding capital was arranged on a part and part mortgage, enabling him to use the rental income generated to service the remaining debt and leaving him to use his investment income for his living expenses.
Our specialist mortgage advisers are adept at navigating the intricacies of structuring sophisticated financial profiles to ensure your money works hard for the lifestyle you want. Get in touch if you need to remortgage in later life, we have the experts to help find you the right solution to suit your needs.
