Our clients were approaching retirement when they were advised to sell their buy-to-let to pay off the interest-only mortgage on their home. Instead, we came up with a solution that allowed them to keep both properties.
By the time they came to us, the Whitmores* had already been told the answer was ‘no’. They had spent years building their own business, owned their home and a rental property, and simply wanted to stay put.
Another broker had told them there were no options open to them and that they would have to sell their home to clear the mortgage on it.
Luckily, they found Simmonds Mortgage Services online, and the outcome was very different.
*name changed to preserve anonymity
Understanding the challenge
The Whitmores were approaching retirement and coming to the end of an interest-only mortgage on their home. The term was up, and the outstanding £145,000 needed to be repaid. The challenge was how they were going to repay it without selling up.
As with a lot of self-employed borrowers, their income wasn’t neat or predictable, as mainstream lenders like to see. On paper, it also looked modest. These two things ruled out remortgaging onto a new residential deal.
A lifetime mortgage, the natural route for a couple who want to stay in their home in later life, was also off the table at first, because the £145,000 owing was too large a share of the property’s value (£320,000) for a lender to consider at their age.
The Whitmores also owned a buy-to-let property worth around £350,000, with £168,000 outstanding. Selling it was one way to clear the mortgage on their home, but it brought in a steady £1,700 a month, and they had no wish to part with it.
Some past credit blips added a further complication, closing off the most competitive high-street rates.
Their goal was simple. Keep both properties, and find a way to satisfy the lender who wanted its money back.
The solution
First, we remortgaged the buy-to-let with a specialist lender comfortable with the Whitmores’ credit history. Using the rental income to support the new borrowing, we raised an extra £75,000 at a rate of 6.42%.
That £75,000 was used to reduce the mortgage on their home to around £70,000, roughly 22% of its value. At that level, the numbers finally worked for a lifetime mortgage.
We then arranged equity release to clear the remaining balance, fixed for life at 6.5%. In their early to mid-60s, the Whitmores were young for this kind of lending, which counted in their favour. Because a lifetime mortgage has no required monthly payments, their income was no longer the barrier it had been with a standard mortgage.
The result was exactly what they had been told was impossible. They kept their home, kept their rental property, and carried on receiving the rent, without selling a thing.
A message from our valued client
“Working with Andrew Simmonds @SimmondsMortgages for our mortgage needs was an exceptional experience. His dedication, attention to detail, and deep knowledge of the mortgage market stood out from the very beginning.
Andrew was consistently methodical, ensuring every step of the process was clear, accurate, and well-managed.
What we appreciated most was his effective communication — he kept us informed throughout the entire journey, making what could have been a stressful process feel smooth and manageable. His professionalism and commitment gave us complete confidence in every decision we made.
We would highly recommend Andrew to anyone seeking mortgage advice or support.”
Simmonds Mortgage Services: more than just mortgages
At Simmonds Mortgage Services, we know the trickiest cases are often the ones other brokers turn away. When your circumstances do not fit a standard checklist, we take the time to understand what you are trying to achieve and search the whole market to find a solution that works now, and for the future.
If you have been told your situation is too complex, contact Simmonds Mortgage Services today and let us help you find the right way forward.