Case Study –Structuring Interest-Only Borrowing Across Complex Family Income

The Client

A family required a complex residential refinance using a Joint Borrower Sole Proprietor structure, with an adult daughter supporting her parents’ borrowing.

The income profile was layered and included foreign currency earnings, self-employed income, company income, PAYE income and contractor income.

The refinance also needed to repay both an existing first charge mortgage and a second charge bridging facility.

The Solution

We identified a lender able to consider the family structure, the full range of income sources and the clients’ interest-only requirement. The mortgage was arranged on a full interest-only basis, providing the cashflow structure the family needed. A five-year product with no early repayment charges was selected, giving the clients flexibility to sell or downsize during the mortgage term if their circumstances changed.

The Henry Dannell Difference

The complexity lay in the combination of factors: family support, the ownership and borrowing structure, multiple income types, foreign currency earnings, existing secured debt and the requirement for full interest-only borrowing. Rather than considering each element in isolation, we brought the circumstances together into a coherent lender presentation. This allowed the refinance to address the immediate need to repay existing borrowing while preserving flexibility for the family’s longer-term plans. Your property may be repossessed if you do not keep up repayments on your mortgage.