The client was buying her main residence for £1.15 million, she required £1.2 million to purchase the property and cover most of the fees, so 104% LTV was required. The client’s income was from court ordered maintenance and rental profits from her unencumbered investment properties. Whilst this provides considerable security, it was not acceptable to mainstream lenders so a bespoke large loan solution was required to enable her to purchase a new main residence.
We secured a loan of £1.2 million against the new purchase and buy to let properties the client owns. £885,000 was secured against the buy to let properties worth £1.45 million and the remaining £315,000 secured against the new purchase property. The buy to let income covered the larger loan and the client’s maintenance income was sufficient to cover the £315,000 lending for the bank to be comfortable that the client could keep up with the mortgage payments.
|Loan amount:||£1.2 million (46% LTV on total property value of £2.6 million)|
|Rate:||4% pay rate (5 year tracker at 2.5% over the banks base rate currently 1.5%)|
|APR:||Overall cost for comparison 4.20% APR representative variable|
|Loan purpose:||Purchase and capital raise|
|Lender’s arrangement fee:||0.50% of loan amount|
|Early repayment charges:||None|
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 4.20% APR representative variable based on 5 years at 4%, lender’s arrangement fees of 0.50% x £1.2 million (£6,000), legal and valuation fees of £10,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Largemortgageloans.com is a trading name of Largemortgageloans.com Limited, which is authorised and regulated by the Financial Services Authority. A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £100,000 the fee would be £1,170 in total. Of this, £234 (20%) would be payable on application and the balance of £936 (80%) on completion. The total fee is non-refundable.