CASE STUDY 3

Consider using the equity in your home to fund renovations with a cost-effective remortgage. Remortgaging can provide low-interest rates, allowing you to release funds for home improvements.

Case Profile:

Our clients wanted to remortgage their £3.5M home to raise additional funds for home renovations. We evaluated the maximum borrowing threshold and included it in their remortgage application.

The sole earner had recently changed jobs, and as a result, had no earnings track record in the new position. However, we were able to demonstrate their strong history of high salaries within the same industry, providing lenders with some level of comfort.

Our clients wanted an interest-only mortgage to manage their cash flow. Additionally, the property’s atypical setup posed a challenge since two outbuildings were rented out as holiday lets, which few lenders are comfortable with.

Solution:

We leveraged our relationships with lenders who suited our clients’ profile and requirements, and reached out to them to compare rates and terms. To strengthen our client’s case, we highlighted their extensive industry experience, using their CV alongside historical income documents to demonstrate similar earnings in previous roles. We also obtained a letter from the Financial Director confirming our client’s new income.

A private bank agreed to offer £1.75m, providing our clients with a 50% loan-to-value ratio, which was perfect for the desired home improvements. The bank provided the mortgage on an interest-only basis at a low fixed rate for five years. As with most fixed-rate mortgages, there were early repayment charges, which was acceptable for our clients as they had no intention of moving home for the next five years. Their long-term plan was to use profits accrued from some holiday let properties alongside their pension to repay the mortgage and downsize to a smaller home in retirement.