Our client requested help to secure a mortgage to purchase a property in central London. After living and working in Hong Kong for years, he decided to return to the UK.
He had mortgages on two properties in the Far East; he was paid in US Dollars and he owned a portfolio of liquid bonds and shares.
Despite the client’s large salary and bonus, he did not meet the affordability requirements or acceptance criteria of the high street lenders.
Most banks would refuse the application because he was an expat, and his income was not sufficient to cover two mortgages plus the new loan.
Trinity’s adviser approached a private bank offering impressive rates. He worked with the bank to structure the client's income and assets to fit the strict acceptance criteria.
The bank used a combination of the salary, liquid bonds and shares to provide the £2.5 million mortgage. Approximately £1.5 million was on an interest-only basis.
Property: Central London.
Rate: 2.35% fix until 6 July 2015.
The APRC applicable to this mortgage is 3.2% APRC.
Reversion rate: 3.25% - the lender’s standard variable rate.
Lender arrangement fee: 0.5% of the loan or £12,500.
Mortgage term: Interest-only 10 years – Capital repayment 20 years.
Repayment type: Mixture of interest-only and capital repayment.
Loan-to-value: Approximately 71%.
Early repayment charge: 2% of the loan amount in year 1, then 1 in year two.
Overpayments: Up to 10% of the outstanding balance can be repaid each year without charge.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
For help to purchase a property in the UK, call Trinity Financial on 020 7016 0790.