Our client wanted to refinance her home in order to purchase a buy-to-let property.
As she did not have a mortgage she wanted to release equity to buy another property and take advantage of rising house prices in her area.
Case details and solution
We explained that offset mortgages are a good option if you want to borrow money against your home, especially if you don’t need to access the funds immediately.
As our client had not found anywhere to buy she will not need to pay any interest until the funds are drawn down. As requested, the finance was put in place so she could buy a property quickly and in effect be a cash buyer.
Property: House valued at £550,000 located in Surrey.
Mortgage loan amount and rate: Approximately £325,000 taken on a 2.39% offset two-tracker rate. After two-years, the mortgage reverts to 3.39% over the Bank of England base rate, currently 3.89%.
Lenders arrangement fee: £999 and added to the loan amount.
APR: The overall cost for comparison is 3.89%.
Term: 20 years.
Repayment type: Interest-only mortgage.
Loan-to-value: Approximately 59% of the property value.
Early repayment charge: 3% for two-years.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
If you would like help to arrange and offset mortgage, call Trinity on 020 7016 0790. You can also email: firstname.lastname@example.org