Trinity Financial recently arranged a £1.2 million mortgage for a 73-year-old client purchasing a new home.
Even though he was selling a property and had a significant deposit, he had been struggling to find a lender to provide him with a larger mortgage loan because of his age.
Trinity’s broker approached a high street bank offering incredibly cheap rates to older borrowers in a position to demonstrate they have enough pension or investment income to purchase a property.
The bank provided a six-year mortgage term to take our client up to his 79th birthday and used another property he owned as the interest-only repayment vehicle.
The mortgage offer was produced within a week and there was a free property valuation.
Rate: 1.49% - 0.74% over the Bank of England base rate until 31/03/2021.
Reversion rate: The bank’s standard variable rate currently 4.19%.
The overall cost for comparison is 3.30% APRC representative.
Lender’s arrangement fee: £999
Mortgage term: 6 years
Repayment type: Interest-only
Early repayment charge: No charges
Overpayments: No limit on overpayments
Representative example: An interest mortgage of £1,200,000 payable over 6 years, initially on a 1.49% tracker rate until 31/03/2021 and then on a standard variable rate (currently 4.19%) for the remaining 4 years, would require 24 monthly repayments of £1,490 followed by 48 monthly repayments of £4,190. The total amount repayable would be £1,438,204 made up of the loan amount, plus interest (£236,880) and £999 (product fee), £0 (final repayment charge), £30 (completion fee). The overall cost for comparison is 3.30% 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 an older borrower mortgage