£3.25 million mortgage for hedge fund chief executive buying a £6.5 million historic country house
£3.25 million mortgage for hedge fund chief executive buying a £6.5 million historic country house
Trinity Financial secured a £3.25 million mortgage for the chief executive of a London hedge fund company purchasing a £6.5 million country house. Despite the client’s substantial earnings, the property’s extensive grounds, additional accommodation and historic character significantly restricted the choice of lenders.
Our broker arranged a repayment mortgage with a two-year tracker rate and no early repayment charges, giving the client the flexibility to make substantial overpayments.
The mortgage at a glance
| Detail | Mortgage arranged |
|---|---|
| Client | Chief executive of a London hedge fund company |
| Property purchase price | £6.5 million |
| Mortgage amount | £3.25 million |
| Loan-to-value | 50% |
| Repayment method | Capital and interest |
| Mortgage product | Two-year tracker |
| Initial tracker margin | Bank of England base rate plus 0.67 percentage points |
| Early repayment charges | None |
The challenge: financing a historic property with extensive grounds
The client wanted to purchase an impressive country house with origins dating back to around 1600. The six-bedroom property featured five reception rooms, an indoor swimming pool, extensive landscaped gardens, a coach house, a separate guest house and an additional outbuilding.
Although the applicant earned very well, finding a suitable mortgage involved more than demonstrating affordability. The £3.25 million mortgage requirement ruled out a number of smaller lenders, while the acreage and multiple buildings reduced the options further.
The client also had specific requirements for the mortgage. They wanted a repayment arrangement with the flexibility to reduce the balance substantially whenever their finances allowed. They also wanted the most competitively priced rate.
This meant finding a lender comfortable with both the property and the loan size, alongside a product that supported the client’s repayment plans.
The solution: a large repayment mortgage with unrestricted overpayments
Trinity’s broker identified a lender willing to consider the property and provide the required £3.25 million mortgage at 50% loan-to-value.
The mortgage was arranged on a capital and interest basis over the longest term available to the applicant. Alongside the scheduled monthly repayments, the client could make lump-sum overpayments without early repayment charges, helping them work towards repaying the mortgage sooner.
The selected two-year tracker charged 0.67 percentage points above the Bank of England base rate. Based on the 3.75% base rate recorded in the case details, this gave an initial payable rate of just over 4.4%.
After the tracker period, the mortgage would revert to the lender’s current 6.24% standard variable rate.
Supporting the client through a change of property
The client had initially selected another complex property, for which Trinity successfully secured a mortgage offer. After receiving the offer, they decided to pursue this alternative home.
Our broker reassessed the lending options for the replacement property and secured approval for the new purchase. Both properties were successfully placed with suitable lenders.
Looking for a mortgage on a substantial country house?
Trinity Financial helps high earners arrange large mortgages for country houses, historic homes and properties with extensive land or additional accommodation.
Call Trinity Financial on 020 7016 0790 to secure a country house fixed or tracker rate mortgage, book a consultation, or use our appointment calendar
The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
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