Trinity Financial recently arranged a £1 million remortgage for a client switching rates and releasing equity from his home.
He was remortgaging to secure a cheap two-year fix and raising funds to gift to his son to use as a deposit to purchase a property.
Our client asked for help because his existing lender would not offer him the money on an interest-only basis or a long enough mortgage term.
Even though he had a £2.5 million property and an excellent salary, the lender would not provide a sufficient mortgage because he was in his 60’s. The combination of a shorter-term and larger mortgage would have made the monthly payments too high on full capital repayment.
After struggling to secure enough money through the standard high street lenders, we contacted the large loan team at a large bank which provides Trinity’s brokers and a limited number of London-based firms with access to its specialist underwriters.
After discussing the client's overall financial situation, they agreed to a nine-year term on interest-only and even provided a larger loan than its affordability calculator suggested was possible.
The bank provided a free property valuation and free legal fees. It did not have an issue with the additional funds being used as a gifted deposit.
Rate: 1.54% two-year fix
Reversion rate: The bank’s standard variable rate currently 4.24%.
The overall cost for comparison is 3.61% APRC representative.
Lender’s arrangement fee: £999
Mortgage term: 9 years
Repayment type: Interest-only
Early repayment charge: Yes - for two years
Overpayments: Up to 10% per year without charge
Representative example: An interest mortgage of £1,000,000 payable over 9 years, initially on a 1.54% fixed rate for two-year and then on a standard variable rate (currently 4.24%) for the remaining 7 years, would require 25 monthly repayments of £1,284.61 followed by 83 monthly repayments of £3,536.86. The total amount repayable would be £1,326,787 made up of the loan amount, plus interest (£325,674) and £999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 3.61% 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+ mortgage