Even though they planned to buy the property for cash to secure a quick sale - they still wanted access to the money again in the future.
Case details and solution
Even if a property is bought for cash, it is possible to get a significant part of the money back using a same day remortgage. We advised our client that it is possible to arrange a mortgage to complete in time with their cash purchase, this would enable them to have a high percentage of the cash funds put back into their bank account.
Property: Four bedroom house in Surrey for £550,000.
Remortgage the property on the same day and provide approximately £400,000 cash back.
Mortgage rate: A two-year fixed rate at 2.14% at 70% loan-to-vale.
The mortgage will be taken over a 25-year term.
Reversion rate: 4.79%
Lender''s arrangement fee: £995 - free property valuation and remortgage service.
APR: The overall cost for comparison is 4.5%.
Repayment type: The mortgage is on a capital repayment basis.
Early repayment charges: 2.5% until 01/01/2016.
Trinity can help: If you are looking for help to release equity from your property to recoup funds or to purchase another house or flat, call us on 020 7016 0790 or email firstname.lastname@example.org
October 16, 2013