Life Mortgage Case Study

Mr & Mrs H from Falkirk were referred to me by one of my Solicitor contacts as they had asked him for advice on increasing their current Lifetime Mortgage.

The Problem

The current Lifetime Mortgage, which was taken out 5 years ago, had an outstanding balance of £29,000. Mr & Mrs H were unsure if further funds could be borrowed and if they could, what the maximum was that could be released. The property was currently valued at approximately £170,000.

The First Meeting

We met at a time and place that was convenient to the clients and discussed the options available. I gathered all the facts needed for my recommendation and found out what the clients needed. I promised to come back with a recommendation within 7 days.

The Second Meeting

This was where we went over in details the 3 main options open to the clients:

1) Increase the borrowing using the current lender
However the maximum they could release on top up the current borrowing was £19,000 and clients wanted access to more than this.

2) Use a Flexible Lifetime Mortgage
This would allow clients to release a further £16,000 that was needed immediately with a further £3000 left in reserve to be used at any time in the future. This means that they only get charged interest on the money actually used and not what was left in reserve. However again clients wanted more than £19,000 to be released.

3) Obtain a Lifetime Mortgage from the open market
I found only one provider who was willing to lend a maximum of £62,000. This would release £33,000 immediately to be used for any purpose.

I left all the information with Mr & Mrs H to allow them to consider all the options and then we agreed to meet up once more to decide on the solution.

The Solution (and 3rd Meeting)

Again at a time and place that was convenient, we discussed again the options and agreed that option 3 suited the clients best. They wanted as much money released as possible in order to do the things that they want, in whatever time they have left and option 3 delivers this. I filled in the relevant application form, collated all the identification information required and organised the valuation via the lender.

The Service

Over the space of 3 separate meetings with Mr & Mrs H, we discussed in detail what their requirements were and after presenting what was available in the market, agreed on the most suitable solution for their needs. I then filled in all the paperwork and submitted all the documentation to the lender. I took the stress and hassle away by offering and delivering a service that very quickly came up with and delivered a solution which met their needs.