Our client asked for help to remortgage off of her existing five-year fixed rate. She wanted to secure one of the lower fixed rates and reduce her monthly repayments.
When she applied for the mortgage initially, she was an employed solicitor and able to provide payslips. However, she recently switched to a partner in a law firm.
The five-year fix was relatively high and it made sense to lock into a two-year fix. Even with the early repayment charges, it was still financially beneficial to switch lenders.
As she recently transitioned from an employed solicitor to a partner in a limited partnership, most lenders treated her as a self-employed person. Without at least one year’s full history they would not lend based on her income.
Trinity’s adviser approached a large high street bank happy to accept employed doctors and lawyers switching into new partnership agreements. This is on the basis they can produce the appropriate documentation and a reference letter from the firm's finance director.
Property: House in Surrey
Rate: 1.69% fix until 30/06/2018.
The overall cost for comparison is 3.6% APRC representative.
Reversion rate: 3.49% over the BBBR – currently 3.99%.
Lender arrangement fee: £999
Mortgage term: 20-year term
Repayment type: Full capital repayment
Loan-to-value: Approximately 70%
Early repayment charge: 3% until 30/06/2018.
Overpayments: Up to 10% of the outstanding balance can be repaid each year without charge.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
For help to secure a mortgage if you have been appointed as a law partner, call Trinity on 020 7016 0790.