Giving clients breathing room to plan their next move
A wealth planner, private bank and investment manager all-in-one.
Our client’s wishes
We were approached by a well-regarded broker to help a British couple in their late 60s refinance their holiday home in Cornwall.
They had an interest roll-up bridging loan, as they originally planned to sell the property. However, due to market prices in the region not working in their favour, they felt it wasn’t the right time to sell or achieve their desired price.
To refinance their property, they needed £1,300,000 for a property valued at around £3,500,000, and were looking for a two-year mortgage term to provide flexibility before putting the property back on the market.
Our clients’ situation
Both clients are in their 60s so we needed a detailed breakdown of their income and earnings. It became clear from this review that their earnings didn’t meet our affordability criteria, because they had other property debts and were drawing only a modest income from their long-standing business.
However, after completing a full review of their wider financial picture – including assets, liabilities, and cash reserves – we were happy that they had enough funds to cover the mortgage payments for the next two years. Based on this, a pre-funded mortgage option was the most suitable.
This recommendation appealed to the clients, as it meant no monthly payments for two years and gave them time to focus on other business ventures.
We arranged a two-year interest-only mortgage, supported by a low loan-to-value ratio (under 50%) and two alternative repayment strategies in case the property didn’t sell within the term.
Our clients’ outcome
We arranged a two-year interest-only mortgage, supported by a low loan-to-value ratio (under 50%) and two alternative repayment strategies in case the property didn’t sell within the term.
The mortgage was set at a fixed rate, which meant no stress testing was required during the term.
Both the clients and broker appreciated the flexibility and responsiveness shown throughout the process. Valuations are now underway, and once onboarding is complete, we’ll move quickly to issue the mortgage offer.
The clients are very pleased with how everything has come together as it has given them the breathing room they need to focus on other projects until the time is right for them to sell their property.
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Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.
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