Trinity Financial recently arranged a £1 million buy-to-let product transfer mortgage for a professional landlord.
As our client's fixed rate was due to expire she wanted to secure another deal. She knew buy-to-let rates were completely priced and she could access many of the best deals because of the low loan-to-value.
Trinity’s broker researched the market to find out if there was a lower fixed rate than the one offered by her existing lender. The most competitively priced fix was marginally lower through another bank, but for the speed of service, she opted to stay with her current lender.
As the client was at a low loan-to-value and they were a professional landlord, the bank was happy to provide a two-year year fixed rate without the need for a new property valuation.
The lender issued the offer within 48 hours, and they were happy to maintain the 13-year term.
The product had an extremely low rate and a £1,795 arrangement fee. The sale of the property was used as the interest-only repayment vehicle.
Rate: 1.78% two-year fix
Reversion rate: The bank’s standard variable rate currently 5.24%.
The overall cost for comparison is 4.75% APRC representative.
Lender’s arrangement fee: £1,795
Mortgage term: 13 years
Repayment type: Full interest-only
Early repayment charge: Yes - for five years
Overpayments: Up to 10% per year without charge
Representative example: An interest mortgage of £1,002,000 payable over 16 years, initially on a 1.78% fixed rate until 31/01/2021 and then on a standard variable rate (currently 5.24%) for the remaining 11 years, would require 25 monthly repayments of £1,489.70 followed by 167 monthly repayments of £4,385.41. The total amount repayable would be £1,774,229 made up of the loan amount, plus interest (£769,606) and £1,795 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4.75% 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 £1 million+ buy-to-let mortgage