David & Sarah: Monetising Pensions & Investments
Who did we help?
David and Sarah Frankland, both retired, had built a substantial investment and pension portfolio worth almost £1.46 million. At 64, they wanted to downsize from their large family home and purchase a £700,000 apartment closer to their grandchildren, but they no longer had a traditional earned income.
David & Sarah Frankland retired at 64 and looking to downsize
What did they need?
The couple required a £250,000 mortgage to complete their purchase. Although they had significant wealth, much of it was held in pensions and investments rather than cash, so they needed a lender that could look beyond conventional income sources.
By taking the time to understand their wider financial position, we helped David and Sarah secure a mortgage where many mainstream lenders could not.
Why were they facing challenges?
Many mainstream lenders struggled with the application because David and Sarah had no employed or self-employed income - and the couple didn’t want to make a large withdrawal from their portfolio simply to satisfy affordability rules. So, despite holding more than enough assets, their financial position did not fit the standard underwriting model.
How did we help?
At Furness Building Society, we were able to take a more flexible approach by monetising the non-cash elements of their £1,402,850 investment portfolio. Using a 5% drawdown calculation, an assessable income of £70,142 per year was established, providing a clear affordability solution.
We were also happy to offer an extended mortgage term up to age 80. This enabled the couple to secure the borrowing they needed while keeping their long-term financial planning intact.
Our enhanced lending criteria might help one of your clients. Contact our Furness Intermediaries team on 0800 988 1561 or speak to one of our Business Development Managers.