Interest Only End of Term Mr & Mrs Ali

Background:

Mr and Mrs Ali faced the challenge of remortgaging their home at the end of their interest-only mortgage term with a significant outstanding balance of £125,000. With Mr. Ali retired and on a lower income, and Mrs. Ali still employed, they needed a solution that considered their combined income for affordability and allowed them to extend their mortgage term to Mrs. Ali’s 75th birthday.

Challenges:

1. Large outstanding balance:

The couple did not have the funds to clear this mortgage and required a remortgage for the outstanding balance.

2.Age and Income

With Mr. Ali retired and on a lower income, and Mrs. Ali still employed, they needed a solution that considered their combined income for affordability and allowed them to extend their mortgage term to Mrs. Ali’s 75th birthday.

3. Navigating the Home-Buying Process:

Mr and Mrs Ali were unsure how to proceed with remortgaging their property, requiring guidance on choosing a mortgage and managing interactions with their existing lender and solicitors.

Solutions:

1. Personalised Assessment:

A flexible lending approach was adopted after a thorough review of their financial situation, including income, expenses, and credit history, to identify the most suitable mortgage option.

2. Tailored Advice:

A lender offering a like for like mortgage and higher income multiple was recommended, allowing them to borrow the outstanding amount on the mortgage. A longer mortgage term with a fixed rate was also suggested to ensure manageable and affordable payments.

3. Support Provided:

Throughout the process, Mr. and Mrs. Ali received tailored advice and support, including help with paperwork and guidance through the application process, as well as interactions with solicitors. This comprehensive support system allowed them to successfully navigate the remortgaging process, resulting in a satisfactory outcome where they could remain in their home with manageable payments

Outcome:

Mr and Mrs Ali, were very happy to be able to stay in their family home a little longer and give them time to decide what their next steps would be, once Mrs Ali had retired. They were also happy they had affordable monthly payments and will be paying a lower monthly payment.

The case study highlights the importance of personalized advice and support in achieving a successful remortgage outcome for homeowners facing similar challenges.