Case study
How we helped a couple buy a third home with an interest-only mortgage and a flexible repayment strategy.
Case summary:
Client type: High-net-worth couple in their 60s
Mortgage purpose: Purchase of a coastal retreat in Suffolk
Existing properties: Main London home and country house
Income profile: Both senior directors with salaries from major UK corporations
Repayment structure: Interest-only borrowing across all three homes
Repayment strategy: Eventually sell two properties and retain one as their permanent home
Main challenge: Demonstrating sufficient equity without deciding which properties would be sold
Recommended mortgage product: Competitive two-year fixed rate with a high street bank
The client
Our clients were a couple in their 60s, both senior directors in major UK corporations.
They already owned a main home in London and a country house. They wanted to purchase a coastal retreat in Suffolk, giving them three homes to divide their time between.
The situation
The couple had substantial income and wealth, and affordability was not the obstacle to the purchase.
However, all three properties would carry interest-only mortgages. Their intended repayment strategy relied on the equity held across the homes, with the eventual sale of two properties clearing the borrowing and allowing them to settle permanently in the third.
They had not yet decided which home they would keep. The mortgage therefore needed to accommodate a clear overall intention without requiring a firm commitment to sell specific properties at the outset.
The interest-only challenge
The proposed mortgage could not be considered in isolation from the borrowing secured against the couple’s existing homes.
Each property formed part of the repayment arrangements for another. The lender needed to understand the outstanding mortgages, the equity in each home and how future sales would provide enough money to clear the debt.
Strong earnings supported the monthly interest payments, but the application also needed to demonstrate a credible route to repaying the capital.
The flexibility challenge
The purchase would introduce a new pattern of living as well as an additional mortgage commitment.
The couple wanted some certainty over their payments while they adjusted, but also an opportunity to review the arrangement once they had experienced dividing their time between three homes.
The rate period therefore needed to balance initial stability with their wish to reconsider their longer-term housing plans.
The repayment strategy challenge
The couple intended to sell two homes eventually, but wanted to retain the freedom to choose which one would become their permanent residence.
They might remain in London, move to the country house or settle on the Suffolk coast. A repayment strategy tied to selling one specifically named property would restrict that choice.
We needed a lender comfortable assessing the equity across all three properties and considering how the proposed exit could work under each possible combination of sales.
Our solution
We secured an interest-only mortgage with a high street bank willing to consider the couple’s wider property ownership and repayment intentions.
The application brought together the values, outstanding borrowing and equity across all three homes. This allowed the lender to assess whether selling two properties could clear the mortgages while leaving the couple with one home to occupy permanently.
The bank accepted the repayment approach without requiring them to decide immediately which property they would retain.
We also secured a very competitive two-year fixed rate, providing payment stability during the initial period and a natural point to review their housing and mortgage arrangements two years later.
Our clients’ outcome
The couple secured the mortgage needed to purchase their Suffolk coastal retreat and divide their time between their three homes.
The arrangement preserved their choice over where to settle permanently, with the lender comfortable that the equity across the properties supported their eventual repayment plans. The two-year fixed rate gave them time to enjoy the new arrangement before reviewing their next steps.
Frequently asked questions.
Every client and every mortgage is different, but there are some questions we are asked regularly.
From affordability and deposits to complex income, expat mortgages and specialist property finance, our FAQs explain how different lenders may approach different circumstances.
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