From today (11 October) we are improving the price on three of our standard residential fixed rates.
Mr and Mrs S are both nearing retirement age. Mr S is employed earning £45,000 and Mrs S no longer works but receives a private pension of £14,000.
They have lived in their current home for 23 years. Their property is worth £475,000 and they have a mortgage of £165,000 outstanding and want to remain where they are for as long as possible.
Unfortunately, their existing lender couldn't help. But we could.
Splitting the mortgage was the answer.
What happened next?
We were approached, and established Mr S was planning on retiring at age 70 at which point he would have his state pension and a private pension, and they will eventually downsize.
We helped by lending the full £165,000 needed to repay their existing mortgage over a spilt term:
- Part 1: £40,000 over eight years on a repayment basis
- Part 2: £125,000 over 15 years on an interest only basis
Their combined pensions are sufficient to service the £125,000 into retirement. They plan to downsize before this and repay the loan back from the equity.
Splitting a mortgage is easy with us. We can:
- Split a mortgage by term, product and repayment method
- Split a mortgage to offer multiple parts to the loan
- Combine a mortgage with Joint Borrower – Sole Proprietor
- No credit scoring
- Individual underwriting
- A dedicated help desk and online service