Client Background

A homeowner contacted Active Mortgages as their fixed-rate mortgage was approaching the end of its term. Having secured the mortgage several years earlier, they wanted to review the market and secure a more competitive deal before moving onto a higher standard variable rate.

At the same time, they wanted to staircase their shared ownership property by increasing their ownership from 25% to 50%. Based on a recent valuation, they estimated they would need to borrow approximately £120,000 to purchase the additional share, alongside refinancing their existing mortgage.

Their priority was to secure a long-term fixed-rate mortgage, providing certainty over monthly payments while supporting their long-term financial plans.

The Challenge

Although the client’s circumstances were relatively straightforward, the transaction involved more than a standard remortgage.

The property required an updated valuation to support the staircasing application, and the mortgage needed to be structured to cover both the existing loan and the purchase of the additional ownership share.

To simplify the application, the client preferred the affordability assessment to be based solely on one employed income, rather than including a self-employed spouse whose accounts would have introduced additional paperwork and complexity.

The client also wanted a mortgage that aligned with their retirement plans. Their intention was to reduce their mortgage balance over the coming years before using pension savings to repay the remaining balance once they retired.

The Solution

After discussing the client’s objectives, Active Mortgages recommended carrying out a full review of the mortgage market to identify lenders suitable for both the remortgage and the staircasing element.

The proposed strategy included:

Remortgaging onto a more competitive fixed-rate deal before the existing product expired.
Raising sufficient borrowing to purchase an additional share of the property.
Considering longer fixed-rate products to provide greater certainty over future repayments.
Structuring the application using a single employed income to streamline the underwriting process.
Collecting the necessary documentation before sourcing the most suitable lender.

With a healthy salary, modest existing financial commitments and a clear long-term repayment strategy, the client appeared to be in a strong position to proceed.

The Outcome

Following the initial consultation, the client had a clear understanding of the mortgage process and the steps required to move forward.

They already had most of the supporting documentation available, enabling Active Mortgages to begin researching suitable lenders promptly.

By combining the remortgage with the purchase of an additional ownership share, the client is expected to:

Increase their ownership in the property.
Reduce the monthly rent payable on the remaining shared ownership portion.
Secure a competitive fixed-rate mortgage.
Build a stronger long-term financial position ahead of retirement.

Why This Case Stands Out

Remortgaging a shared ownership property while staircasing requires careful planning, as lenders assess affordability, valuation requirements and shared ownership criteria differently.

Rather than simply searching for the lowest interest rate, Active Mortgages focused on creating a solution that supported the client’s wider financial goals. By taking into account their future retirement plans, preference for payment certainty and desire to simplify the application process, we were able to develop a strategy tailored to their individual circumstances.

If you’re looking to remortgage a shared ownership property, purchase additional shares through staircasing, or explore your options before your fixed-rate mortgage ends, Active Mortgages offers expert, whole-of-market mortgage advice designed around your long-term goals.