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Using a lifetime mortgage to repay an overdue interest only mortgage

A later life lending case study

Objective

Our clients had a large estate with an interest only mortgage that had been due to be repaid in full 2 years prior to seeking advice.

 

They wanted a solution that would enable them to refinance the existing mortgage onto a lower rate.  This was of particular importance since they were paying the lenders variable rate and the property value was £1.75m with an interest only balance of £650k.

 

After discussing the available options with the clients, we decided to use a lifetime mortgage to clear the debt and bring the rate down from the lenders viable rate.

Obstacle

The property was down valued due to a foam spray being used on the roof timbers, this stopped the valuer being able to inspect the timber. The valuers comments would be enough to stop the deal progressing.

Outcome

Sentry Lifetime sourced the manufacturer of the foam, and obtained a full report relating to the work carried out on the roof and when the foam was applied. This allowed us to notify the valuer that the foam is in fact benefiting the property not detracting from it.  The valuer was satisfied with the report and was able to update the valuation report, enabling the mortgage to be offered.

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