Case Study –Lifetime Mortgage | Drawdown Reserve

Value	£1,250,000
Loan	£375,000 + £206,875 drawdown reserve
LTV	46.55%
Rate	4.30% MER
Adviser	- Stephen Savill

The Client

Our client owned two properties and used both of them – a residential home in Surrey and a property in London, close to her choral society. The fixed-rate mortgage on her Surrey property had recently expired and her term had less than a year to run. The lender’s Standard Variable Rate (SVR) meant that she now had an income shortfall, and her savings were exhausted. With two properties to maintain, she was concerned she would have to sell her London property and sacrifice her passion for singing.

The Solution

By raising a small amount of capital in excess of the sum required to repay her existing lender, the client gained peace of mind knowing funds were in hand for the coming year’s lifestyle expenditure. In addition, we advised the client to include the balance of the lender’s maximum loan at their lowest initial rate in a drawdown reserve for future expenses.

The Henry Dannell Difference

With interest rates starting to increase across the market, time was of the essence. We liaised with the client’s accountant and conducted our client meetings at their offices. This meant the financials were to hand and it gave the client the opportunity to address us both. This helped save time and meant the client received comprehensive advice, whilst still securing the best available rate. Our client has now reduced her committed expenditure, has funds in hand for the coming year and funds in reserve for future expenditure. Worth singing about!