An LLP remortgage was the only way out for a Cheshire family who had used bridging finance to buy their dream home. They moved quickly to stop another buyer taking the property, but once they were in, the bridging interest kept building every month. One partner was in their 60s, and on paper the £414,000 loan looked unaffordable over the shorter term most lenders would offer. They needed a lender willing to look at their LLP income and offer a longer term, and they needed it fast.
What was the situation?
The couple ran a successful limited liability partnership. They had used a regulated bridging loan to purchase their £950,000 home in Cheshire, which allowed them to move quickly when the property came to market. Now they needed to remortgage to repay the bridge and move onto a standard residential mortgage.
The loan amount required was £414,000. The challenge was that one partner was in their 60s, which immediately restricted the mortgage term most lenders would offer. A shorter term would push the monthly payments beyond what their combined income could support under affordability rules.
What was the challenge?
The bridging loan was regulated, which meant interest was accruing month by month. There was a clear time pressure to complete the remortgage.
The primary obstacle was affordability. Based on the couple's ages and the loan amount, a joint application would result in a term too short to make the monthly payments affordable under standard lending criteria. Most high street lenders would have declined the case or offered a significantly reduced loan amount.
The couple's business was profitable and growing. Their last two years of accounts showed consistent income. But structuring the application to pass affordability tests while securing the full loan amount required a different approach.
What did we do?
We reviewed the couple's financial position in detail. Their LLP accounts showed strong, increasing profit over the previous two years. This gave us options.
Rather than submitting a joint application with a restricted term, we structured the case using only one applicant's income. This allowed us to extend the mortgage term to 29 years, bringing the monthly payments within affordable limits for a single income.
We selected a lender that would accept a longer term based on retirement age and that underwrites LLP income properly. Many high street lenders either refuse longer terms outright or apply blunt affordability overlays that don't account for business growth trajectory.
The lender issued a mortgage offer 12 working days after the case was submitted.
What was the outcome?
The remortgage completed with a two-year fixed rate at 4.98%. The couple were able to repay the bridging loan and move onto a standard residential mortgage with manageable monthly payments over a 29-year term.
The case moved from submission to mortgage offer in two weeks, stopping the interest accrual on the bridging loan and giving the couple certainty over their housing costs.
If you are facing age-related affordability restrictions, have business income that doesn't fit high street criteria, or need to structure a case differently to make the numbers work, we can help. Every remortgage with a longer term than standard requires a lender that understands the full picture, not just the headline figures.
