Our clients asked for help to remortgage away from their building society's standard variable rate to secure lower monthly repayments.
The main income earner was a limited company director and over the last few years he had limited drawings. The company had retained profits and he used an appropriately accredited accountant.
As he was paying a 6.08% standard variable rate, he was keen to remortgage as quickly as possible. He planned to capital raise to consolidate some unsecured debts and refurbish part of the property.
As he was not drawing enough income to qualify for a £540,000 mortgage, we approached a lender accepting retained profits and an accountant’s projections. The lender was happy our clients met their affordability requirements and there was enough income within the business.
To ensure the monthly repayments were as affordable as possible, Trinity's broker arranged the mortgage over a 35-year term.
To make sure the repayments would be for the same for the foreseeable future, he locked into a competitively priced five-year fix.
Property: Three bedroom house in London
Rate: 2.74% fixed rate until 02/01/2021
The overall cost for comparison is 4.2% APR
Reversion rate: Standard variable rate - currently 4.74%
Lenders arrangement fee: £995
Mortgage term: 35-year term
Repayment type: £750,000 full capital repayment mortgage
Early repayment charge: 5% of the loan until 02/02/2021.
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.
If you would like help to remortgage, call Trinity on 020 7016 0790.