Bath Semi-Commercial Property Mortgage for a Retired CEO

A retired CEO approached bath mortgage broker Fox Davidson to refinance a £2.5 million mortgage on a mixed-use property in Bristol, comprising a commercial ground floor and residential apartments above, valued at £3.8 million. The client, now in their late 70s, wanted an interest-only loan to reduce monthly outgoings and allow the rental income to fund a comfortable retirement.

The mixed-use nature of the property deterred many high-street lenders, who viewed it as a non-standard asset. The client’s age exceeded most lenders’ maximum age limits, and their income was limited to pension payments and rental income from the property’s commercial and residential units.

We worked with one of the challenger banks as at the time they were being quite aggressive in their pricing and flexible in their criteria and it met their current appetite. We secured a £2.5 million interest-only mortgage fixed for 5 years, with a repayment strategy based on the eventual sale of the property. We overcame the age and income hurdles. The refinance was completed in just over 10 weeks, providing the client with lower monthly payments and financial security in retirement.