Trinity Financial recently arranged a £950,000 mortgage for two IT Contractors.
They had a history of contracting in the IT sector and between them earned just over £1,000 per day.
They had sold their property and wanted to secure a large mortgage to purchase a bigger home.
To ensure they had longer-term payment security they were looking for a competitively priced five-year fix rate and had a 15% deposit.
Trinity’s broker approached a large bank offering some of the lowest five-year fixed rates across the market.
The mortgage was agreed in principle over the telephone subject to the clients providing a 12-month history of work, bank statements and sufficient identification.
The lender had one of the better contactor policies in the market and worked out the maximum loan size using the day rate x five x 48 months. It could also use up to five-times joint incomes.
Property type: Four-bedroom house
Rate: 1.98% until 30/09/2024
Reversion rate: The bank’s standard variable rate, currently 4.24%.
The overall cost for comparison is 3.5% APRC representative.
Lender’s arrangement fee: £1,499
Mortgage term: 30 years
Repayment type: Full capital repayment
Early repayment charge: 3% of the loan in year 1, 2% in year 2.
Overpayments: 10% per annum
Representative example: A mortgage of £956,000 payable over 30 years, initially on a 1.98% fixed rate for 61 months and then on a variable rate of 4.24% for the remaining 299 months, would require 61 monthly payments of £3,530.46 followed by 299 monthly payments of £4,514.90. The total amount repayable would be £3,174,845 and a £1,499 arrangement fee. The overall cost for comparison is 3.5% 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 or book a consultation