Objective
Our introducer approached us with clients who had an expired residential mortgage on an interest only basis and the lender had already begun repossession proceedings as the clients intended exit strategy had failed to be arranged as quickly as anticipated.
Obstacle
The clients were desperate to raise sufficient funds to clear their existing mortgage after all their efforts to resolve this situation had unfortunately failed. More time was needed to find a suitable property to downsize in to, but because they were already over term with their current mortgage, they were facing repossession and eviction from their family home. The applicant was a self-employed taxi driver, who had experience a downturn in his income over the Covid years, which meant his income couldn’t support a re-mortgage to clear his existing first charge. This was further compounded by today’s higher residential interest rates and cost of living rises which reduced their disposable income even further.
Outcome
The LTV limit at 65% combined with the retained interest meant that a 12-month term would not have released enough to clear the existing mortgage, so using our relationship with the lenders underwriters, we managed to obtain a shorter term of seven months as an exception which meant the net advance was now sufficient to clear their liabilities in full. The valuer confirmed the property could achieve a sale within this timescale, ensuring the lender was comfortable with the applicants exit strategy to sell and downsize could be achieved.
Subject to status. Product and criteria availability is subject to change or withdrawal at any time. For intermediaries only.
