Expert Knowledge & Professional Service

£1 million+ pound mortgages getting cheaper

More mortgage lenders are offering £1 million-pound mortgages on their most competitively priced fixed and tracker rates.

A host of high street lenders are providing the private banks with real competition and offering large loan two-year fixed rates below 1.5% and five-year fixed below 1.75%.

Trinity Financial has access to NatWest for Intermediaries specialist high-net-worth team providing our brokers with direct access to their mortgage decision-makers. 

The bank’s lowest rate is a 1.28% fixed rate until 31 October 2021 - incredibly it is available for mortgages up to £10 million. Once the rate expires it reverts to the lender’s 4.24% standard variable rate and the overall cost for comparison is 3.79% APRC representative.

Aaron Strutt, product director at Trinity Financial, says: "Over the last year more of the lenders have started to target high-net-worth borrowers and there has been a price war to tempt clients to purchase properties or remortgage.

"The price was has been so active than the lenders are reporting underlying losses because of pressure on mortgage margins."

The 1.28% rate has early repayment charges until 31 October 2021 and a £995 arrangement fee. Applicants will need a 40% deposit to qualify.

Representative example: A mortgage of £1,000,000 payable over 25 years, initially on a fixed rate until 31/10/2021 at 1.28% and then on a variable rate of 4.34% for the remaining 23 years, would require 25 monthly repayments of £3,896.83 followed by 275 monthly repayments of £5,282.83. The total amount repayable would be £1,552,896.50 made up of the loan amount, plus interest (£550,199) and fees of £995. The overall cost for comparison is 3.79% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

Click here to read our recent case studies or call Trinity Financial on 020 7016 0790 to secure a million-pound mortgage

Barclays providing 5.5 times salary mortgage offer to borrowers earning over £75,000

Barclays is offering up to 5.5 times salary mortgages to new and existing Premier and Barclays Wealth customers. 

The bank raised the maximum income multiple for applications from 5 times salary to 5.5 times salary for all residential capital repayment mortgages.

If you do not have a Premier account, Trinity Financial can arrange for a personal banker to contact you and open an account prior to the application being submitted. One applicant will need an annual income of £75,000 to qualify. If one applicant does not earn £75,000 - you will need a joint income of £100,000 to qualify or have £100,000 saved or invested with the bank. 

Interest-only applications will not be considered, although Barclays will potentially offer a 35-year repayment term to a maximum age of 70. This should lower the monthly costs.

Our advisers have access to a specific broker-only team regularly providing impressively fast mortgage offers.

Aaron Strutt, product manager at Trinity Financial, says: “Barclays 5.5 times salary mortgage offer has been popular with our clients, particularly as most high-street banks and building societies will lend between four and five times salary. They do not typically offer mortgages over five times income. 

“Trinity has access to another leading lender offering up to 5.5 times salary mortgages providing clients earn over £100,000 - either individually or as part of a joint application. The bank has competitively priced rates and you do not need to open a premier account to qualify. The maximum loan is £1,000,000.”

One more bank recently started providing 5.5 times salary mortgages to Accountants, Architects, Barristers, Chartered Surveyors, Dentists, Medical Doctors, Pharmacists, Pilots, Solicitors and Vets. Applicants must have been qualified in the last five years and earn £40,000 or more.

To secure a 5.5 times salary mortgage call Trinity Financial on 020 7016 0790 or send an enquiry.

How long are the lenders taking to produce mortgage offers?

Mortgage lenders with impressive rates accepting bonus income payments

Trinity Financial has access to a range of mortgage lenders with great rates taking bonuses into account for affordability purposes.

Most banks and building societies will use 50% of bonuses, but some can accept up to 100% of the payments if borrowers have a track record of receiving them. 

Aaron Strutt, product manager at Trinity Financial, says: “As we approach bonus season we are speaking to more clients who want to know how much they can borrow.

“Some of them are planning to remortgage and release equity from their property to do extensions, while others want to move up the ladder and buy bigger homes.”

Generous lenders and great rates

HSBC for Intermediaries regularly tops the mortgage best buy tables and has some great fixed rates. The bank will use 50% of the average bonus over the last two years for affordability purposes.

Trinity has access to one large bank’s specialist underwriting team, and it can consider using up to 100% of bonus income assessing the average of the last two years payments. The lender recently produced a mortgage offer in a week for our client who was purchasing a large property in Chelsea. 

Call Trinity on 020 7016 0790 or complete our enquiry form to secure a bonus income mortgage

Four in five first-time buyers say it was worth using a broker

Four out of five first-time buyers say that using a mortgage broker helped the process of buying a property according to a survey by Comparethemarket.

The comparison website’s research highlighted that almost 80 per cent of first-time buyers found using a mortgage broker “added value”, while 11% said they would be too nervous not to use one when buying their next home. 

In a poll of over 2,000 homeowners, the survey demonstrated that 15% wish they would have haggled more on the price of the house when buying their first property. The research highlighted 10% of respondents felt they made a mistake in using all of their savings to fund the deposit on their first home, leaving them with no emergency savings and an inability to do any work to the property. Additionally, 6% wished they had ensured the survey was more thorough.

Aaron Strutt, product director at Trinity Financial, says: “We work with lots of first-time buyers to let them know how much they can borrow and the most suitable mortgage lender and rates for them. There was an increase in the number of first-time buyers almost immediately after the stamp duty limits were changed.”

Source: Comparethemarket 

Call Trinity Financial on 020 7016 0790 to secure a first-time buyer mortgage

£55.2 billion worth of mortgages expiring over next three months

A staggering £55.2 billion worth of buy-to-let and residential mortgage rates are due to expire over the next three months according to figures produced for Barclays. 

Research firm CACI says there are £50.2 billion worth residential fixed or variable rates expiring between July and September 2019. The figure is £5 billion* for buy-to-let. 

There are still an estimated £100 billion+ mortgages with a pay rate above 3.75% equating to 1.34 million customers that could save money by remortgaging.*

Aaron Strutt, product director at Trinity Financial, “Barclays produces these figures a few times a year, and they highlight how much money borrowers could save by switching mortgages. 

“There is a vast choice of mortgage rates available across the market, so it does not always make sense to stick with your existing lender.

“Locking into a more expensive deal could be costly, especially if you plan to take a longer-term rate or you have a large mortgage loan. Our brokers can explain what's the best option for you and provide a proper choice of rates.”  

*Barclays, May 2019 

Call Trinity Financial on 020 7016 0790 to secure a remortgage 

Coventry undercutting market with 1.75% five-year fix mortgage

Coventry for Intermediaries is offering a fantastically low five-year fixed rate mortgage.

The mortgage is fixed at 1.75% until 30 September 2024, and once the rate expires, it reverts to the lender’s 4.49% standard variable rate. The overall cost for comparison is 3.63% APRC representative.

Aaron Strutt, product director at Trinity Financial, says: “You will need a rather large 50% deposit to access this mortgage and it is available for property purchases and remortgages.

“If you are in the market for a five-year fixed rate, there are lots of options. The lenders are still lowering the price of their mortgages and its possible to get a good deal providing you have a 10% deposit.”

Coventry’s rate has early repayment charges for the full five-years and a £999 arrangement fee. There is a free property valuation.

Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate of 1.75% until 30/09/2024 at 1.75% and then on a variable rate of 4.74% for the remaining 20 years, would require 61 monthly repayments of £1,029.47 followed by 239 monthly repayments of £1,343.90. The total amount repayable would be £385,174.20 made up of the loan amount, plus interest (£133,989.77) and fees of £999. The overall cost for comparison is 3.63% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

To secure a fixed rate mortgage call Trinity Financial on 020 7016 0790

Most borrowers do not qualify for comparison site mortgage deals

Analysis of 11,000 searches made by people looking for a mortgage shows only 3.5 per cent of potential borrowers are eligible for every mortgage deal on the market.

According to research by the consumer credit company Experian, almost one in five – 22 per cent – of prospective borrowers meet the initial qualifying criteria for every lender on the market. However, once their income and expenditure is assessed, and their required loan considered, this figure drops to 3.5 per cent.

Further data shows that lenders decline 33 per cent of customers on average because they do not meet the lender’s full lending criteria.

Aaron Strutt, product director at Trinity Financial, says: “According to Experian’s research the lenders decline 33 per cent of customers on average. It is highly likely many of these borrowers would qualify for a mortgage with one of the other providers.

“The lenders have eased their acceptance criteria over the last few years, and they are very keen to provide mortgages now. Banks and building societies offer income stretch mortgages, larger loans and even mild adverse credit deals.”

Experian’s data also highlights 27 per cent of potential borrowers are eligible for a mortgage with at least one lender but are unable to borrower their desired amount. This figure rises to 31 per cent for those looking to remortgage with additional borrowing requirements, typically used to fund home improvements or to pay off debt.

Call Trinity Financial on 020 7016 090 if you have been declined for a mortgage

Santander launches 1.65% five-year fix mortgage as cost of funding falls again

Santander for Intermediaries has launched a market-leading five-year fix mortgage undercutting Barclays and HSBC.

The mortgage is priced at 1.65% and fixed until 2 December 2024. Once the deal expires, it reverts to the lender’s 4% standard variable rate. The overall cost for comparison is 3.14% APRC representative.  

The mortgage has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan size is £1 million.

Aaron Strutt, product director at Trinity Financial, says: “The top lenders are really putting the squeeze on the smaller providers and offering super-cheap fixed rates. They are still busy undercutting each other because they still have huge lending targets, and they are still making money on these mortgages.

“If you are looking for a longer-term fixed rate you are spoilt for choice at the moment. The lenders provide free property valuations and legal service, reducing the cost of remortgaging.”

According to data from Moneyfacts.co.uk the average five-year fixed-rate mortgage has fallen from 2.84% to 2.79% in the last three weeks after the five-year swap rate dipped below the two-year rate for the first time in 11 years. The latest two-year swap rate is 0.66%, while the five-year swap rate is 0.60% - the last time this happened was on 7th October 2008.

Representative example for Santander 1.65% rate: A mortgage of £250,000 payable over 25 years, initially on a fixed rate of 1.65% until 02/12/2024 at 1.75% and then on a variable rate of 4% for the remaining 20 years, would require 62 monthly repayments of £1,017.56 followed by 238 monthly repayments of £1,257.75. The total amount repayable would be £363,818.22 made up of the loan amount, plus interest (£112,433.22) and fees of £999. The overall cost for comparison is 3.14% 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 a mortgage