Please release me, let me go.

The Client
We helped the couple S & N move and purchase a larger home approx 8 years ago. At the time, they really wanted to purchase a larger home in a better location, one which unfortunately their budget would not allow. S was working two jobs and N was a school teacher. Their son was 21 at the time, finished Uni and had a decent salary. He had no plans on moving out and was happy to go on the mortgage boosting affordability and helping purchase the 5 bedroom house they really wanted. Eight years on and the situation was very different. Their son had met and married a partner and now wanted to purchase a new home for them to live in.

The Challenge
The challenge was proving affordability now that both clients were in their late 50's and wouldn't have the additional income from their son.

The Solution
S & N purchased this property with the aim of raising their family in until they were ready to leave home. When the time came, they would downsize as they wouldn't need the same space. As a side note, since purchasing the property, they had improved it greatly adding a double storey side extension turning it into a seven bedroom house. To be able to release their son, we remortgaged the property on an interest only basis with a lender that assesses affordability based on their ability to afford the payments on interest only basis, which are a lot lower than on a capital and interest mortgage. This meant they could now afford the mortgage in their own names and their son could be released from the mortgage and deeds of the property, freeing him up to now purchase his own home (which, of course, we are helping him with).