Clearing a Current Mortgage
Our client was looking to borrow enough to clear her current mortgage and second-charge mortgage on her residential property in the UK. Her husband had passed away unexpectedly, and he had been the main income earner, which left the client unable to effectively manage her monthly payments.
Due to the change in household income, the current mortgage lenders and other mortgage lenders would not re-finance the property to allow for longer-term and thus more manageable payments. The current lenders had extended the mortgage redemption date by 6 months to allow the client time to find an alternative arrangement.
The client’s residential property was used as security for the loan. Due to the unique nature of the property, it had taken a while to find the perfect buyer. The property was being actively marketed, and the exit strategy for the bridging loan was the sale of the client’s current residential property when she moved in with her daughter. The client’s 6-month leeway period was nearly over as they approached us, and the existing lender had an increasingly pressurised approach to repaying their loan.
Thanks to the team at UK Property Finance and their good relationship with the new lender, the client was able to avoid her house being repossessed, which would impact her credit file. The client now has an additional 12 months in which to sell her property fairly via an estate agent.