Lending money to clients over 70

Many banks shy away from lending money to clients who are over 70, however we take the view that as long as a client has a sensible repayment plan, and is completely clear on the implications of the borrowing they are taking on, we can be creative in how we help them with their borrowing needs. 

As an example of this, we had wealthy clients who were in their 70s and wanted to refinance an existing mortgage of almost £3m on their family home, which was valued at around £6m. They wanted to borrow the funds for the following 5 years, during which time they were going to sell the property and downsize.  Now retired, they had been successful business people and had income both from their pensions as well as from some investment properties.  While the situation was slightly unusual, due to the mix of both their income and their other existing assets, the fact that they could deposit sufficient funds with Hampden & Co to meet mortgage interest payments for the 5 year period, meant we were able to offer them a 5 year Interest-Only mortgage for the full amount they needed.

In another situation, one of our clients wanted to give money to his children, both of whom required funds urgently, one of them needed to buy their ex-husband out of the family home, while the other was investing in a unique business opportunity.

Unfortunately, our client’s cash was tied up in rental properties, each of which was worth over a million pounds. This meant that, apart from the costs involved, selling one of the properties to free up £300,000 simply didn’t make sense. As an alternative to this, we provided a loan to our client who was able to pass on the money his children needed quickly and efficiently.

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