Our clients were coming to the end of their 4.39% fixed rate mortgage with Clydesdale Bank and wanted to know if it was worth paying the early repayment charge.
With fixed rate mortgages consistently getting better, they wanted to take advantage of the low interest rate environment and lock into a better product. They also wanted to remain on interest-only.
After receiving the mortgage details and information about the fees incurred for repaying the mortgage early, Trinity worked out that it would be cost effective to repay the £10,000 fee and take another product.
Trinity approached TSB Bank as they offered a leading five-year fixed rate for borrowers using income from a limited company with two years accounts. They also offer interest-only mortgages.
As there was a lot of equity in property, TSB were happy to produce a fast mortgage offer and make a contribution to the cost of switching to a better deal.
Property: House in London
Value: £1.8 million
Rate: Fixed rate at 2.09% until 31/07/2020
Reversion rate: TSB’s standard variable rate, currently 3.99%
Lenders arrangement fee: £1,995 product fee
Mortgage term: 15 years
Repayment type: Mortgage taken on a capital repayment basis
Early repayment charge: 5% of the loan amount until 31/07/2016, and then 4% until 31/07/2017, 3% until 31/07/2019 and 1% until 31/07/2020.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity on 020 7016 0790 to switch to a better rate.