50+ mortgage case study: Leon

Leon, a 57-year-old optometrist, had a diverse income stream. Leon received £13,000 per annum from his own business, an additional £22,000 generated from a second Holiday Buy to Let property and a substantial private pension of £52,000.

Leon is currently living in a luxurious penthouse apartment on the seventh floor, boasting an idyllic view overlooking the river, located in the southern part of the city.

His current interest only mortgage was coming up for maturity. Leon was keen to keep his financial flexibility and sought an interest only loan of £250,000 against his property valued at £1.6 million, extended to the age of 80. His longer term plan would be to sell the property later in life and relocate out of London, but he wanted the autonomy to choose when the right time for this to happen would be.

His penthouse had recently been renovated, including cladding work. Crucially, the developer responsible for the refurbishment was part of the Government Developer Remediation Contract, which met our guidelines and meant we were happy to help.

The combination of the property’s recent cladding work, the interest-only requirement and the desired extension past the age of 70 meant Leon and his broker were struggling to find a lender to meet his needs.

After speaking with one of our helpful Hodge BDMs, we were happy to help. We were able to provide enhanced income multiples for a like for like case, and interest only into retirement. While other lenders hesitated due to the property’s unique characteristics, Hodge embraced a common-sense approach. When considering the positive merits of the case, the low loan-to-value, the completion of remedial works through a government backed scheme, and the highly desirable location of the property, Hodge’s Underwriting team confidently supported Leon’s case.

Leon’s circumstances were seen as unique to other lenders. But at Hodge, we know every customer is unique and we support them on their own personal journey. We understand the importance of financial flexibility in later life. Our tailored approach and willingness to appreciate the nuances of Leon’s situation meant we could be there for him in a moment that mattered.

For intermediaries only. This is a hypothetical example. It’s not an indication of likely or possible benefits or what we think will happen in the future. It’s not advice of a recommendation from us.