- Mostly interest-only £6 million mortgage on super-cheap 0.67% rate
- UK income with bonus paid in US dollars used in five times salary multiple
- Broker swapped client to cheaper deal when base rate reduced
Our clients both worked in the banking industry and initially contacted us asking for a £6 million bridging facility. They had agreed to purchase a £9 million property.
After initially sourcing a competitively priced bridging loan through a private bank, our adviser suggested a better way to structure the purchase with a mortgage.
Why was it difficult?
The couple needed a five-times salary part foreign income mortgage and they wanted most of it on an interest-only basis. They had a deposit of under 30% and the enquiry came in just before the coronavirus lockdown.
How did we help?
Trinity's broker approached a large bank offering the cheapest fixed-rate mortgages in the market. The lender agreed to use the foreign income, apply a five-time salary income multiple, and offer most of the mortgage on interest-only. The monthly payments on the mortgage were just over £13,000, including a large element of capital repayment.
What was the rate?
After initially securing our clients a 1.23% fix the Bank of England dramatically reduced the base rate, so our adviser called our clients to let them know we could switch them to a tracker.
After agreeing to move from the fix to a tracker, the mortgage reduced to 0.64% over the Bank of England base rate until 30 June 2022, giving a pay rate as low as 0.74%.
After the initial tracker period, the rate reverts to the lender's standard variable rate, which is currently 3.59%. The overall cost for comparison is 3.8% APRC. The arrangement fee was £999, and early repayment charges apply. The mortgage had a 20-year term.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation