£975,000 mortgage arranged for existing clients buying a bigger family home

Trinity Financial's broker recently arranged a £975,000 capital repayment mortgage for existing clients buying a larger property. They were moving home and planned to use the equity from the sale of their existing property as the deposit for their new purchase. 

The challenge was that the sale and purchase timelines did not match perfectly. The clients needed the flexibility to complete on their new home and repay the mortgage on their previous property at the right time, without being locked into unnecessary early repayment charges.

Why did the clients need Trinity Financial’s help?

The clients were not in a major rush to complete, but they had several moving parts to line up. They needed to sell their existing property, release equity for the deposit, complete on the new purchase and repay their previous mortgage when the timing allowed.

Trinity’s brokers reviewed the clients’ existing mortgage and wider plans early in the process. Rather than allowing them to move onto another fixed rate with early repayment charges, we arranged an early repayment charge-free tracker product with their current lender. This gave the clients the flexibility to repay the mortgage on their previous property when the sale completed.

This planning helped avoid unnecessary fees and gave the clients more control over the timing of their move.

Which lender was selected?

For the new mortgage, Trinity Financial arranged a Halifax for Intermediaries two-year fixed rate at  just over 4.60%. This was one of the most competitive rates available at the time and suited the clients’ plans for the larger property purchase.

The mortgage was arranged on a capital repayment basis. The term was extended to help keep the monthly payments more manageable, as the clients were taking on a larger mortgage after buying a bigger home.

Why is early advice important for home movers?

This case shows why it is important for home movers to speak to a mortgage broker early in the buying journey. Many clients focus on the new mortgage rate, but the existing mortgage can be just as important.

If the sale and purchase timings do not line up, borrowers may need flexibility. An early repayment charge-free tracker, bridging loan, porting option or temporary arrangement may help depending on the circumstances. Without proper advice, borrowers could end up paying avoidable early repayment charges or choosing a product that does not fit their moving plans.

How Trinity Financial helped

Trinity Financial’s brokers helped the clients:

• Review their existing mortgage position

• Avoid unnecessary early repayment charges

• Move onto an ERC-free tracker with their current lender

• Arrange a £975,000 mortgage for the new purchase

• Secure a two-year fixed rate at just over 4.6%

• Extend the mortgage term to reduce monthly payments

• Line up the sale, purchase and mortgage arrangements

Call Trinity Financial on 020 7016 0790 to secure a 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