£1.5 million interest-only mortgage for higher earners with expensive child care costs and car loan
What was the situation?
Our clients initally contacted Trinity Financial keen to speak to a specialist broker providing expert large mortgage loan advice.
The investment banker and his marketing director partner were selling their family home and had found a new property in south-west London to buy.
The house was worth £3.5 million, and they needed a mortgage of £1.5 million.
What was the issue?
While our clients were higher earners and had a large deposit, they paid around £2,750 monthly for their nanny and approximately £500 for a car loan. These monthly commitments significantly impacted their mortgage affordability and the amount they could borrow, and they limit the amount borrowers can have on interest-only.
As they received bonuses, they were keen to secure a shorter-term mortgage where they could make overpayments, and they wanted the whole loan on interest-only. Most lenders offer their lowest rates to borrowers taking five-year fixes.
Trinity Financial has years of experience with this type of enquiry and knows exactly what lenders are the best to approach for more generous affordability calculations. We knew we’d be able to help!
What was the process?
After understanding their requirements and assessing the most suitable mortgage lenders, our broker was able to present a large mortgage loan from a bank with a competitively priced two-year rate. This rate was not much more expensive than many of the five-year fixes.
Even though our clients were higher earners, their monthly credit commitments meant their maximum borrowing was reduced by around £300,000.
What was the solution and mortgage rate?
Trinty's broker found a lender that had just lowered its two-year fixed rate priced just below 4.8%, providing the full £1.5 million. The whole mortgage was on interest-only over a 25-year term.
This fixed period meant the clients had a very cost-effective way of financing the property for the foreseeable future. They were also free to switch to another fixed rate in the shorter term as they thought rates would come down. They could also make 10% overpayments each year without charge.
Lending solutions with Trinity Financial
Are you looking for a larger mortgage loan and expert advice? We’re here to help you find a solution – no matter how complex your circumstances. At Trinity Financial, our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.
We work closely with our trusted network of private banks and high street and specialist lenders to arrange bespoke mortgages to suit your circumstances.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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