Trinity’s clients initially called to find out if it would be possible to keep their existing home and release some of its equity to fund the purchase of a new family house. This is known as a let-to-buy mortgage.
As one of the applicants was a limited company director and his partner was employed, they needed a lender to look at their overall financial situation. They had already found a new property to buy and were keen to secure a new residential mortgage.
Trinity’s broker assessed the market and found a lender happy to provide a buy-to-let mortgage on the existing home based on the rental income it generated.
As the salary and dividends were not quite enough to secure a large enough new residential mortgage, Trinity’s broker approached a lender who would use the retained profits in the business and it boosted the maximum loan size. This was in addition to the partners PAYE income.
Case details for the residential purchase
Property type: House in London
Rate: Two-year tracker at 1.39% - 0.89% above Bank of England base rate
Reversion rate: The bank’s standard variable rate, currently 3.94%.
The overall cost for comparison is 3.62% APRC representative.
Lender’s arrangement fee: £900
Mortgage term: 30 years
Repayment type: Full capital repayment
Early repayment charge: No early repayment charges
Overpayments: Unlimited overpayments
Representative example: A mortgage of £760,000 payable over 30 years, initially on a tracker rate for two years and then on a variable rate of 3.94% for the remaining 27 years, would require 24 monthly repayments of £2,582 followed by 336 monthly repayments of £3,534.14. The total amount repayable would be £1,249,886 made up of the loan amount, plus interest (£488,568) and fees of £900. The overall cost for comparison is 3.62% 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 retained profits mortgage for limited company directors