Interest only remortgage using large share portfolio

What was the situation?

I was recently approached by a married couple who needed to remortgage from their existing lender to a new lender as they wanted to capital raise on their residential mortgage in order to pay down their buy to let (BTL) and secure a better rate. The property in question was a high-value £2 million property in the South East of England and my clients wished to secure the loan on a completely interest only basis as they were investing heavily into their share portfolio and wanted to minimise payments for the mortgage.

What was the issue?

My clients’ case was a complex one; not only did they require the mortgage on a fully interest only basis, but there had also been a significant drop in client income due to previous health issues. It soon became clear that in order to get a new potential lender to be happy with lending on an interest only basis, I would have to demonstrate the wealth that existed within their sizeable share portfolio.

What was the process?

Due to the complexities of the case, I had to represent my clients’ case very delicately when approaching lenders to confirm that any health issues had now resolved themselves and that the ongoing income would be enough to comfortably support the loan.

As such, I presented my clients’ case to a reputable bank, producing a detailed demonstration of their sizeable share portfolio, as well as proof that client income was no longer an issue, to satisfy any questions the lender may have had concerning affordability.

What was the solution?

Working closely with the chosen lender, I was able to secure a fantastic 1.29% two-year fixed rate on a fully interest only basis, providing my clients with the flexibility to review their strategy should they want to pay off some more of the mortgage in the future.

Despite this being a complex and detailed case, the hard work to secure a better rate with a new lender was definitely worthwhile; my clients were very happy with the secured rate of 1.29%, as their previous lender had offered a rate of 1.74% had they taken the easy option and stayed with them.

Lending solutions with LDN Finance

Are you looking to secure an interest only remortgage on a property in the UK? At LDN Finance, we are dedicated to making the market more transparent for our clientele. Our expert brokers do the hard work for you, navigating eligibility criteria, affordability, and a multitude of various mortgage products and rates to ensure you have choice and control through every step of the process. Get in touch with us today to organise an initial consultation.