CLIENTS SITUATION
Manchester Mortgages contacted one of their existing mortgage clients to review their mortgage and discuss their existing requirements.
The client was a retired Fireman age 60, married with grown up children and owned various Buy to Let properties with outstanding mortgages.
His property was in Wythenshawe and was worth £200,000 with an existing repayment mortgage with Virgin Money which had £10,000 outstanding with 10 years remaining – their existing fixed rate which Manchester Mortgages had originally arranged was due to expire in a couple of months and they were paying mortgage payments of £100 per month.
Our client did not have any other outstanding debt such as outstanding credit card balances or personal loans.
Now retired as a Fireman my client had plenty of spare time and wished to purchase a static caravan on their favourite site in Wales which he and his family could visit & stay.
He needed to raise £47,000 to repay his existing mortgage of £10,000 and £37,000 to purchase the caravan.
THE PROBLEM
Most lenders will lend to people who are retired and are in receipt of a private or state pension or a combination of them both subject to them meeting their affordability criteria.
That said the majority of lenders have a maximum age they wish to have the mortgage repaid by which is usually to age 75 – my client wished to take the mortgage over 19 years which would take him to age 79.
By taking the mortgage over 19 years this reduced the mortgage payment to within our client’s budget of £240 per month.
THE SOLUTION
As Manchester Mortgages are a whole of market / independent broker we were able to research the mortgage market and recommended that our client re-mortgaged to a new lender and increase their mortgage to £47,000 which included repaying existing mortgage and raising the capital to purchase the static caravan.
After fully discussing client’s requirements Manchester Mortgages recommended a 5 year fixed rate at 1.65% with Halifax over 19 years which reduced the mortgage payments to £240 per month – spot on clients monthly budget.
The lender offered a free standard valuation and free legal fees via their nominated solicitor along with no arrangement fees.
CONCLUSION
With their re-mortgage completed our client is looking forward to many happy hours spent in the caravan along with his family and friends.
If you have an existing mortgage and wish to raise monies for that special purchase or to repay outstanding loans or credit card balances or wish to improve your property give MANCHESTER MORTGAGES a call on 0161 706 0242 to see if we can make a difference to your mortgage.
