Trinity Financial recently arranged a £850,000 mortgage for two first-time buyers with a 10% deposit.
After finding their ideal property they called Trinity to find out if it was possible to secure such a high loan-to-value mortgage with a 10% deposit. They had spoken to another broker and he did not come back with any options.
Both clients worked in the legal industry and received good salaries, but as most of the high street lenders cap the maximum loan size at £500,000 with a 10% deposit they needed another option.
Trinity’s broker approached a niche lender offering higher loan-to-value mortgages for wealthier clients. The lender offered a range of two and five-year fixed rates, but the clients opted for a two-year deal.
The 3.99% rate is higher than the average two-year fixes with a 10% deposit, but this product is not available through the vast majority high street banks and building societies.
The mortgage offer was produced within three weeks.
Rate: 3.99% fixed for two years.
Reversion rate: The bank’s standard variable rate currently 3.99%.
The overall cost for comparison is 6% APRC representative.
Lender’s arrangement fee: 0.5% of the loan amount
Mortgage term: 34 years
Repayment type: Full capital repayment.
Early repayment charge: Apply for two-years.
Overpayments: Early repayment charges apply.
Representative example: A mortgage of £848,500 payable over 34 years, initially on a 3.99% fixed rate for two years and then on a standard variable rate of 3.99% for the remaining 32 years, would require 24 monthly repayments of £3,273.59 followed by 384 monthly repayments of £4,557.70. The total amount repayable would be £2,311,385 made up of the loan amount. There is a £4,242.43 (product fee), £50 (final repayment charge), £25 (completion fee). The overall cost for comparison is 6% 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 low deposit first-time buyer mortgage