They needed to purchase the house because the existing mortgage term was coming to an end and it was not possible to extend it. In effect, the lender wanted its money back.
As the purchase was a family transaction and a deposit did not need to change hands, we approached a specific lender happy with this type of transaction. They did not have any issues with the parent''s continuing to live in the property.
Case details and solution
£600,000 mortgage to purchase the long-term family home.
Property: Four bedroom property in Surrey - valued at £2.1 million.
Mortgage rate: A two-year fixed rate at 1.95% - taken over a 25-year term.
Reversion rate and fee: 4% Lender''s arrangement fee of £1,495
Loan-to-value: Approximately 30% of the property value.
APR: The overall cost for comparison is 3.9% APR.
Repayment type: The mortgage was taken on a capital repayment basis.
Early repayment charges: 3% for two years.
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