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£950,000 interest-only mortgage for client locking into 10-year fix

Our clients asked for help to secure a competitively priced ten-year fixed rate mortgage on an interest-only basis.

After selling their home and finding a new property, they had a large deposit. They wanted to take advantage of the ultra-low rate environment and secure a ten-year fix to make sure they had stable monthly repayments.

The main earner was a limited company director, and he wanted us to work with a lender used to lending to the self-employed.

Solution

After assessing our client's company accounts and researching the market to find the most competitively priced ten-year fix, our broker applied to a large high street bank.

The lender was happy to provide larger loans on ten-year fixes and use the sale of the property as a method for repaying the mortgage.

Trinity secured a mortgage offer and the lender provided a free property valuation. Case details

Property: London

Value: £2,000,000

Mortgage: £950,000

Rate: 2.59% fixed until 2 July 2027

Reversion rate: The bank’s standard variable rate, currently 4.49%.

The overall cost for comparison is 3.5% APRC representative.

Lender’s arrangement fee: £999

Mortgage term: 22 years

Repayment type: Full capital repayment.

Loan-to-value: 45%

Early repayment charge: 6% of the loan amount until 02 July 2027.

Overpayments: Up to 10% per annum without charge.

Representative example: A mortgage of £950,000 payable over 22 years, initially on a fixed rate for 120 months at 2.59% and then on a variable rate of 4.49% for the remaining 12 years, would require 121 monthly repayments of £2,052.57 followed by 143 monthly repayments of £3,558.32. The total amount repayable would be £1,258,112.84 made up of the loan amount, plus interest (£371,943.18) and fees of £999. The overall cost for comparison is 3.5% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

Call Trinity Financial on 020 7016 0790 to secure a ten-year fixed rate mortgage

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