Trinity Financial recently arranged a remortgage for a client living in a Grade 1 listed manor house set within the grounds of a medieval castle.
The client was a 77-year-old professional landlord who has been a client of Trinity’s for ten years. He wanted to raise a mortgage of £500,000 against a property value of £1.15 million to continue extending his buy-to-let property portfolio.
The challenge was threefold – the lender had to be comfortable with his income being derived solely from a residential investment portfolio, the nature and location of the property, and our client's age.
Trinity's broker approached a building society with a reputation of accepting unusual applications. After the case was submitted to the lender's credit committee, they agreed to provide the full £500,000 mortgage on an interest-only basis over eight years. This took the applicant to the age of 85 at maturity of the loan.
Rate: 2.65% fixed rate for two years.
Reversion rate: The bank’s standard variable rate currently 4.49% for three years, followed by a higher standard variable rate of 6.14%.
The overall cost for comparison is 4.70% APRC representative.
Lender’s arrangement fee: £1,999
Mortgage term: 8 years
Repayment type: Interest-only
Early repayment charge: No early repayment fee apart from £150 final charge.
Overpayments: Unlimited overpayments
Representative example: An interest mortgage of £500,000 payable over 25 years, initially on a 2.65% fixed rate for two years and then on a current standard variable rate of 4.49% for 3 years, followed by three years at 6.14%. They would require 24 monthly repayments of £1,108.14, followed by 36 monthly repayments of £1,877.58 and 36 monthly repayments of £2,567.55. The total amount repayable would be £690,054,04 made up of the loan amount, plus interest (£186,620.04) and £1,999 (product fee), £150 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4.7% APRC representative.
Call Trinity Financial on 020 7016 0790 to remortgage a grade 1 listed property