Trinity Financial recently arranged a £540,000 remortgage for a client to purchase a buy-to-let property with cash.
He planned to borrow as much money as possible to purchase a property in the north of England because of the strong rental returns.
They wanted to secure a decision in principle to ensure they could borrow enough money before they agreed to purchase a property but were struggling to find a suitable lender.
Our client approached another broker but they could not get an agreement in principle or raise enough money.
Trinity’s broker approached a lender offering up to 90% loan-to-value for borrowers remortgaging to purchase new properties. It provided some incredibly cheap two-year fixed rates.
The bank did not limit transactions to £500,000 or need to know the full details of the intended property purchase.
Once the mortgage completed, the funds were transferred directly to our client's bank account.
Property type: Four-bedroom house
Rate: 1.99% until 31/10/2021
Reversion rate: The bank’s standard variable rate, currently 4.24%.
The overall cost for comparison is 4% APRC representative.
Lender’s arrangement fee: £995
Mortgage term: 35 years
Repayment type: Full capital repayment
Early repayment charge: 2% of the loan in year 1, 1% in year 2.
Overpayments: 10% per annum
Representative example: A mortgage of £540,000 payable over 30 years, initially on a 1.99% fixed rate until 31/10/2021 and then on a variable rate of 4.24% for the remaining 33 years, would require 25 monthly payments of £1,789.34 followed by 395 monthly payments of £2,435.90. The total amount repayable would be £1,006,913 and a £995 arrangement fee. The overall cost for comparison is 4% 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 mortgage