A UK-based couple, both long-term residents, found themselves in a challenging situation. One partner had recently retired from business, while the other continued working in the legal sector.
Together they owned two residential properties in the UK, valued at c. £800,000 c. £600,000 respectively, with each carrying a modest mortgages. Additionally, the partner who had previously managed the household finances could no longer do so, leaving the other to handle all responsibilities, including finances and household management.
The couple also faced a significant tax bill alongside unsecured debts that required careful management. Seeking advice, they turned to trusted contacts, who based on positive past experiences, recommended consulting with us.
After several detailed conversations, we proposed a tailored solution to simplify their financial situation and provide the necessary funds for their needs. The plan involved:
- Securing a c.£400,000 interest-only remortgage on one property. This would:
- Consolidate the existing mortgages on both properties
- Pay off the unsecured debts
- Cover the outstanding tax bill
- Provide funds for essential home improvements
- Streamlined Monthly Payments: This remortgage consolidated multiple financial obligations into a single, manageable monthly payment. The overall cost was lower than their previous combined mortgage payments
- Tailored Lending Solution: The lender’s standard policy did not typically allow capital raising for tax bill payments. However, due to our established relationship with the lender, an exception was made. The repayment of the interest-only mortgage was accepted via the potential sale of either property.
- Favourable Terms: The remortgage was secured at a highly competitive fixed rate for two years, with assisted legal costs to minimise upfront expenses.
The remortgage provided the couple with clarity in managing their finances, enabling the remaining working partner to focus on their career without the constant burden of financial worries. This case demonstrates the importance of personalised financial solutions and the value of strong relationships with lenders in achieving exceptional outcomes for clients during difficult times.
