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Trinity Financial recently arranged a £1.9 million mortgage for a client to purchase a property she had been renting.

When her landlord decided to put the property on the market, she wanted to act quickly and secure a large interest-only mortgage. 

As the rent she was paying was expensive, she wanted to take advantage of the cheap fixed rates and access a mortgage that was cheaper than her rent. 

Solution

Trinity’s broker approached a lender offering competitively priced two-year fixed rate mortgages on a part interest-only and part capital repayment basis. He got the mortgage agreed with our contact at the bank's specialist broker large loan team.

As 25% of the mortgage was on capital repayment and the rest was on interest-only, the monthly repayments were significantly cheaper, and part of the mortgage was repaid each month.

The mortgage came with the facility to make up to 10% overpayments each year so our client could bring down outstanding balance.

Case details

Property type: Four-bedroom house

Value: £2,700,000

Mortgage: £1,890,000

Rate: 1.54% fixed rate until 02/06/2021

Reversion rate: The bank’s standard variable rate, currently 4%.

The overall cost for comparison is 3.63% APRC representative.

Lender’s arrangement fee: £999

Mortgage term: 25-years

Repayment type: Part interest-only

Loan-to-value: 65%

Early repayment charge: For two-years

Overpayments: Up to 10% per annum without charge.

Representative example: A capital and interest mortgage of £1,890,000 payable over 25 years, initially on a 1.54% fixed rate until 02/06/2021 and then on a variable rate of 4% for the remaining 23 years, would require 25 monthly repayments of £7,594.37 followed by 275 monthly repayments of £9,778.43. The total amount repayable would be £2,880,312.50 made up of the loan amount, plus interest (£842,370) and £1,499 (product fee), £200 (final repayment charge), £35 (completion fee). The overall cost for comparison is 3.63% 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 mortgage

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