Trinity's clients asked for a second opinion about the mortgage another broker arranged for them. They thought the rate was high and the setup fees were expensive.
Like many buyers, they were under pressure to complete the purchase and wanted a low rate through a high street bank rather than a niche lender.
The case was more tricky than usual because the main earner was Chinese, worked for the United Nations and was paid in US dollars.
Under the UN structure, she was not liable to pay as much tax as usual and was on a tier 2 visa with some diplomatic exemptions. Her partner worked for a UK based company and was paid in sterling.
Trinity secured the application in principle with a large bank offering low fixed rates for applicants with foreign income. The rate was around 2.5% lower than their existing mortgage offer and the lender's arrangement fee was £995 rather than 0.5% of the loan amount.
While the client was researching the market she approached three or four banks including the same one our broker placed the mortgage with. The lender incorrectly rejected her application and told her she did not qualify.
The mortgage was not straightforward because of her overall income and job role, plus the different allowances showing on her payslip which were used to boost the affordability.
The terms were agreed and offered in 10 working days, while Trinity secured a broker exclusive rate.
Rate: 1.94% rate fixed until 31 December 2023
Reversion rate: The lender’s standard variable rate – currently 3.99%
The overall cost for comparison is 3.22% APRC representative.
Lender’s arrangement fee: £995
Mortgage term: 25 years
Repayment type: Capital repayment
Early repayment charge: Until 31 December 2023.
Overpayments: Up to 10% each year.
Representative example: A mortgage of £650,000 payable over 25 years, initially on a 1.94% fixed rate until 31 December 2023 and then on a variable rate of 3.99% for the remaining 20 years, would require 63 monthly repayments of £2,740.29 followed by 237 monthly repayments of £3,291.36. The total amount repayable would be £954,035.09 made up of the loan amount, plus interest (£301,695.59) and fees of £999. The overall cost for comparison is 3.22% 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 foreign income mortgage