Trinity Financial recently arranged a mortgage for a couple helping their son to get on the property ladder.
They had struggled to find a lender to provide them with a large enough mortgage on an interest-only basis using all three of their incomes. To add to the complication, they also wanted a joint borrower sole proprietor mortgage.
As many banks and building societies limit the mortgage term for older applicants, our clients requested the longest term on an interest-only basis.
Trinity’s broker contacted a bank offering a combination of the requirements to help our clients secure a large enough mortgage.
The lender was happy to take the mortgage up to the parents 80th birthday and use their pension and investments as a repayment vehicle for an interest-only mortgage.
The bank had a leading five-year fixed rate, took three incomes and offered joint borrower sole proprietor.
As the mortgage was on interest-only, there was a facility to overpay 10% of the loan amount per annum without charge.
Property type: Three-bedroom house
Rate: 2.24% for five-years
Reversion rate: The bank’s standard variable rate, currently 4.25%.
The overall cost for comparison is 3.5% APRC representative.
Lender’s arrangement fee: £999
Mortgage term: 14 years
Repayment type: Interest-only
Early repayment charge: 5% of the loan in year 1, 4% in year 2, 3% in year 3, 2% in year 4 and 1% in year 5.
Overpayments: 10% per annum
Representative example: A mortgage of £562,000 payable over 14 years, initially on a 2.24% fixed rate for 60 months and then on a variable rate of 4.25% for the remaining 9 years, would require 60 monthly payments of £1,051.86 followed by 108 monthly payments of £1,995.73. The total amount repayable would be £843,009 and a £999 arrangement fee. The overall cost for comparison is 3.5% 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