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Trinity Financial recently arranged a £3.6 million remortgage for client switching from a private bank. He wanted to raise funds to recoup the money he paid for a basement dig on his home and access a market leading rate.

When our client purchased his house, he arranged a mortgage through a private bank offering a competitive rate while he was living and working overseas. When he returned to the UK, he decided to extend his home and complete a basement dig to have more living space and add value to his property. 

The lenders offering super-cheap large loan rates would not allow him to switch to them because of the amount of work involved in redevelopment. He used his funds to complete the works even though he was on a variable rate and waited for the extension on the property to be completed before remortgaging.  

Our client wanted to lock into a five-year fix that was cheaper than the one offered by his existing bank and borrow money based on his increased property value.

Solution

Once Trinity's broker knew that the property was finished, he called a specialist mortgage underwriting team at a large bank providing £1 million+ deals at standard pricing.

The bank was happy with our client's income and the rate and arrangement fee comfortably undercut the terms the private bank offered. The underwriter issued a mortgage offer within ten working days and this included a free property valuation and remortgage service.

While interest-only was available to the client, he was happy with a capital repayment mortgage.

Case details

Value: £5,400,000

Mortgage: £3,600,000

Rate: 1.82% fixed rate until 30 April 2024

Reversion rate: The bank’s standard variable rate currently 4.19%.

The overall cost for comparison is 3.31% APRC representative.

Lender’s arrangement fee: £1,499

Mortgage term: 25 years

Repayment type: Full capital repayment

Loan-to-value: 60%

Early repayment charge: Early repayment charges until 30 April 2024

Overpayments: Up to 10% per annum.

Representative example: An interest mortgage of £3,600,000 payable over 25 years, initially on a 1.82% fixed rate until 30/04/2024 and then on a standard variable rate (currently 4.19%) for the remaining 20 years, would require 60 monthly repayments of £14,945.26 followed by 240 monthly repayments of £4,190. The total amount repayable would be £5,340,611 made up of the loan amount, plus interest (£1,719,082) and £1,499 (product fee), £0 (final repayment charge), £30 (completion fee). The overall cost for comparison is 3.31% 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 large remortgage

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