Finance for older borrowers seeking to raise capital

THE SCENARIO

Securing finance for older borrowers is almost always problematic on the high street. My clients were a married couple, who were 81 and 72 years old respectively. He was a retired and well-respected university lecturer and chemical engineering expert, whilst his wife had never worked.

They wanted to repay their existing facility of £100,000 and raise another £100,000 so my client could add to his existing collection of sports cars with a brand new Porsche. My client hoped to achieve this on an interest only basis over a 10-year term, at a competitive rate.

It is incredibly difficult to secure finance for older borrowers past a certain age on the high street, due to the tick-box affordability criteria of most mainstream lenders. This is where a broker like Enness can add real value, as we are experienced in sourcing finance for older borrowers, so we know who to approach and can use our lender relationships to negotiate effectively.

OUR SOLUTION

By looking at my client’s entire portfolio, I ascertained that he had significant investment holdings accumulated over many years. Whilst he didn’t wish to cash out any of these investments to purchase the new car, I was able to use these assets to paint a broader picture to certain lenders that I knew would take this into consideration.

Having gathered the relevant information, we approached some smaller building societies and found one who could offer exactly what my client was looking for.

We were able to negotiate for a rate of 2.29% on an interest only repayment basis, for the full £200,000 over a 10-year term. We were also able to secure a product with no early repayment charges (ERCs) meaning my client could pay down his loan as and when he wished, without incurring any penalties. This was an ideal result for my clients.

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