- £400,000 of £450,000 mortgage on interest-only
- 1.49% two-year tracker
- Mortgage without early repayment charges
Our client was a lawyer looking for a mortgage without early repayment charges on part interest-only to keep his monthly costs to a minimum. He had a 25% deposit.
Why was it difficult?
While there is a good selection of lenders offering interest-only mortgages many of them have tough qualification requirements and they do not have early repayment free tracker rates.
How did we help?
Trinity’s broker approached a bank offering some fantastically priced mortgages with a generous interest-only policy.
To help reduce the monthly costs he arranged the £450,000 mortgage so that £400,000 of the loan would be on interest-only and the remaining £50,000 on capital repayment. They would also use the sale of the property as the repayment vehicle.
The lender provided a competitively priced two-year tracker rate without early repayment charges ensuring our client could repay the mortgage early and only pay a £225 administration fee. It was also possible to make lump sum repayments to lower the outstanding debt.
What was the rate?
A variable-rate which is 1.39% above the Bank of England base rate, currently 0.10%, giving a current rate payable of 1.49% for a period of 24 months. This is the same rate for interest-only and capital repayment elements of the mortgage. The rate reverts to the lender's standard variable rate of 3.35%. The overall cost for comparison is 3.2% APRC.
The arrangement fee was £999, there was a free property valuation and there are no early repayment charges.
Call Trinity Financial on 020 7016 0790 to secure a part interest-only mortgage or book a consultation