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Case spotlight: self employed older borrowers

One of the common later life mortgage enquiries we get from intermediaries is for clients unable to extend their interest only facility with their current lender. Recently I’ve been discussing with an intermediary how we could help clients aged in their early 60’s and who are self employed in the horse racing industry.

The clients took out an interest only loan with a high street bank 20 years ago. They have no plans to retire or downsize yet, so sought to extend their interest only facility – to find their route blocked. In addition, they’re now also seeking to capital raise to buy a smaller property, which they will let out, with a possible view to sale and downsize in the future.

After speaking to us, we confirmed to the intermediary that we can use self employed non manual income to calculate affordability up to age 75 which will give the clients more than another 10 years on a standard mortgage product without needing to assess retirement income. The intermediary can then annually review the case to see when they wish to make their sale and downsize, or the options available if they are slowing down their business.

On top of this we’re currently offering remortgage clients a free valuation (up to property value of £1m), fee assisted legals, 50% fee free overpayments calculated on original loan amount (where an ERC applies) and rates from 2.5%.

Do you have a client in a similar situation? Give us a call to see how we may be able to help.