Case Study –Divorcee Refinancing Existing Mortgage

Property Value	£960,000
Loan Amount	£596,000
Location	Shepherd's Bush
LTV	62%
Achieved Rate	0.54% + Base
Completed	February 2023

The Client

The client, who has recently undergone a divorce, expressed interest in refinancing her existing mortgage structure, which is part interest-only and part repayment. The objective was to transfer the mortgage to her sole name while keeping the current structure unchanged. However, her income situation was rather complex as she only had one source of cash bonus. In previous years, she had received stock options, which could not be considered as admissible income given that her employer is a private company. Furthermore, the client’s savings were insufficient to cover both the interest-only component of the loan and the school fees. As a result, a comprehensive analysis of her financial situation was necessary to find the most suitable solution to her unique circumstances.

The Solution

HSBC has the capability to utilise surplus monthly income as a partial repayment mechanism. This, when combined with savings, enabled the client to access the most cost-effective tracker product available at the time, all while retaining their preferred mortgage structure.

The Henry Dannell Difference

This case was discussed at length with the lender's Business Development Manager. As a result, we were able to leverage only one year's bonus history to fulfil the affordability criteria, ultimately enabling the progression of the deal. It is worth noting that without this pre-agreement, the utilisation of HSBC as a viable option would not have been feasible.