Our client asked us to provide her with remortgage options as her fixed rate deal was coming to an end. She wanted to lock into a long term fixed rate to protect her from future increases to the Bank of England base rate.
Case details and solution
As there is a range of longer term fixed rates available at the moment, there were a lot of options. We presented her with five and ten-year fixed rates.
After going through the mortgages and explaining the benefits of each, she was keen to switch banks and secure a competitive ten-year deal.
Property: House valued at £400,000 in Harrow, London.
Loan amount: £245,000.
Lenders arrangement fee: £1,499 and added to the loan amount.
Rate: Ten-year fix at 3.99%.
Reversion rate: After ten-years, the mortgage reverts to 3.49% over the Bank of England base rate.
APR: The overall cost for comparison is 4%.
Term: 25 years.
Repayment type: The mortgage was taken on a full capital repayment basis.
Loan-to-value: Approximately 60% of the property value.
Early repayment charge: 6% of the loan amount until 2021 and 3% until 2024.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
If you would like help to secure a mortgage to purchase a property, call Trinity on 020 7016 0790. You can also email: firstname.lastname@example.org