Trinity Financial recently helped two clients working as contractors in the music industry to secure a £600,000+ mortgage.
They had recently been on a three-month sabbatical and had just returned to work for a new company.
Before their overseas break, applicant one had a track a record of contracting, but applicant two was on maternity leave for 18 months - although she had experience of contracting.
As many mortgage lenders do not allow three-month breaks in contracts and applicant two not having a recent track record, most lenders could not assist.
To add further complications, the applicants had a 10% deposit and required a lender who could take their daily rate at face value and provide five-times the annual amount.
Trinity’s broker approached a mortgage lender with the ability to agree on cases outside of its standard criteria and look at the whole case. The application was pre-approved and an offer produced within two weeks.
Property type: Detached house
Rate: 2.71% until 30 April 2021
Reversion rate: The bank’s standard variable rate, currently 4.74%.
The overall cost for comparison is 4.5% APRC representative.
Lender’s arrangement fee: £0
Mortgage term: 33-years
Repayment type: Full capital repayment
Early repayment charge: 3% until 30/4/2020, 2% until 30/4/21
Overpayments: 10% per annum allowed
Representative example: A mortgage of £612,000 payable over 33 years, initially on a 2.71% fixed rate until 30 April 2021 and then on a variable rate of 4.74% for the remaining 31 years, would require 24 monthly repayments of £2,339.79 followed by 372 monthly repayments of £3,021.32. The total amount repayable would be £1,180,906 made up of the loan amount plus interest and no arrangement fee. The overall cost for comparison is 4.5% 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 contractor mortgage