Trinity Financial recently arranged a £900,000 mortgage for two clients purchasing a large seven-bedroom family home. The property came with two acres of land and a granny annexe.
Both clients worked in London and received good salaries. One applicant had just been made a partner at asset management firm and earned at least 50% of his income through an annual bonus.
As they were planning to purchase the property and carry out some renovation works, they wanted a competitively priced longer-term fixed rate for the payment security. They were keen to secure an interest-only mortgage and minimise the monthly repayments.
Our broker approached a bank happy to provide mortgages on larger properties (subject to their valuer's comments) and use up to 60% of bonus income for borrowers starting new roles.
The lender had a good interest-only lending policy for applicants earning over £100,000 and provides Trinity with direct access to a mortgage processor to get the cases agreed in principle over the phone.
As our clients had a large deposit, the lender was happy to accept the sale of the property and downsizing as the interest-only repayment vehicle. They also provided a facility to overpay up to 10% of the outstanding mortgage balance each year.
The mortgage offer was produced in five working days.
Property type: 7-bedroom detached property
Rate: 1.80% fixed until 30/06/2024
Reversion rate: The bank’s standard variable rate, currently 4.24%.
The overall cost for comparison is 3.63% APRC representative.
Lender’s arrangement fee: £1,499
Mortgage term: 25-years
Repayment type: Full interest only
Early repayment charge: Charges apply for the five-years, and they reduce on a sliding scale.
Overpayments: Up to 10% per annum
Representative example: An interest mortgage of £800,000 payable over 25 years, initially on a 1.80% fixed rate until 30/06/2024 and then on a variable rate of 4.24% for the remaining 20 years, would require 61 monthly repayments of £1,350 followed by 239 monthly repayments of £3,180. The total amount repayable would be £1,744,230 made up of the loan amount, plus interest (£842,370) and £1,499 (product fee), £225 (final repayment charge), £35 (completion fee). The overall cost for comparison is 3.63% 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 mortgage for a large property