Case Study: Upsising with Offset Mortgage and Renovation Funding
DIRECTOR AND MORTGAGE ADVISER
Overview
Our clients — a couple with two children, one an in-house lawyer and the other a software engineer — were upsizing to a townhouse in North London. The new property needed a full renovation and wouldn’t be habitable during the works. They planned to remain in their current home while the renovation was underway, then sell it once the move was complete.
The Challenge
To make the move happen, the clients needed to release equity from their existing flat to fund the deposit, stamp duty, and renovation costs. They also needed lenders that would accept full use of significant bonus income, and allow interest-only borrowing to keep monthly costs manageable during the transition. Flexibility and timing were crucial — both for the renovation phase and future refinancing.
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Our Solution
We arranged a remortgage on their current property to release the required equity, setting it up on a tracker mortgage with no early repayment charge. This meant they could repay the loan penalty-free once the property was sold. Both the new purchase and existing property were mortgaged at 75% loan-to-value on a full interest-only basis, giving them breathing room while carrying two loans. We secured a lender who was happy to use their full bonus income, not just base salaries. For the new property, we selected a two-year fixed-rate product with an offset facility.
The Outcome
The renovation was completed within a year, at which point the clients moved into the new home and sold their old one — repaying the mortgage early without penalty. The sale proceeds, along with a second home stamp duty rebate, were placed into the offset account, reducing the effective interest charged on the new mortgage. At the end of the two-year fixed term, they refinanced onto a standard mortgage product at a lower LTV, benefiting from stronger equity and reduced borrowing costs.
What Our Clients Say
What We Can Do for You
If you’re planning a move that involves holding two properties, significant renovations, or bonus-based income, we can help you navigate the complexity. From penalty-free remortgages to smart offset strategies, we’ll structure a plan that fits your timeline, cash flow, and long-term goals — without compromise.
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YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
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APPROVED BY THE OPENWORK PARTNERSHIP ON 27/06/2025