Trinity Financial recently arranged a six times income mortgage for a law partner.
After finding Trinity's contact details online, he requested help to find a lender with generous income multiples because he was struggling to get a sufficient mortgage from the standard high street lenders.
He had been a partner at a law firm for two years and had a large salary. He also had a significant deposit generated from the sale of his property.
Our adviser approached a building society with particularly generous income multiples for those with more substantial deposits and relatively few personal credit commitments.
After the clients overall the financial situation was discussed with a senior underwriter, the case was agreed on a full interest-only basis on a five-year fixed rate.
The mortgage offer was produced relatively quickly but it had to be extended past the initial three months completion deadline. This was to allow the legal work to be finished.
Rate: 2.75% fixed until February 2023.
Reversion rate: The bank’s standard variable rate currently 5.49%.
The overall cost for comparison is 4.8% APRC representative.
Lender’s arrangement fee: 1% of loan amount (£7,000).
Mortgage term: 28 years
Repayment type: Full interest-only
Early repayment charge: 3% until 28/02/2022 and 1% until 28/02/2023.
Overpayments: 5% per annum – conditions apply.
Representative example: A mortgage of £1,400,000 payable over 28 years, initially on a 2.75% fixed rate until 28 February 2023 and then on the standard variable rate of 5.49% for the remaining 23 years, would require 60 monthly repayments of £3,224.38 followed by 276 monthly repayments of £6,437.10. The total amount repayable would be £3,379,340.45 made up of the loan amount and fees of £7,000. The overall cost for comparison is 4.8% 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 an income stretch mortgage