Who did we help?

Mr and Mrs Chen from York are in their late 60s and retired. They own their own home outright at a value of £700k, as well as a small rental property nearby which is mortgaged. Together they have private and state pensions worth approximately £60k which covers their living costs, monthly car payments and a credit card.

What did they need?

The couple rent their apartment to Mrs Chen’s mother who is in her 80s. They were looking to remortgage to repay the existing mortgage on the property and also borrow money to upgrade the apartment’s interior and make it more suitable for later life. This included installing an accessible wet room, adding hand railings and switching steps for low gradient ramps.

Why were they facing challenges?

Renting property to a relative is considered risky to most lenders and as a result, very few offer regulated buy-to-let products - also known as family buy-to-let mortgages. It’s even more unusual to find a lender prepared to offer a buy-to-let mortgage when the relative in question is the parent of the property owner.

How did we help?

At Furness, we’re happy to consider applications for a regulated Buy-to-Let product, specifically for letting to family members - even when that family member is a parent of the applicant. 

We worked closely with the couple’s broker to review their application, which was considered strictly on an affordability basis - any rental income received is not factored into our affordability assessment and they are evaluated in the same way as a standard residential mortgage.

Our Business Development Manager, Helen, liaised with our underwriting team to discuss the case, and having had sight of the couple’s pensions and bank statements, plus the value of their residential property, we established affordability was not an issue.

If our Regulated Buy-to-Let products could help one of your clients, please contact our Furness Intermediaries team on 0800 988 1561 or speak to one of our Business Development Managers.