The client is a doctor who wanted to purchase another property for cash and borrow a total of £1,700,000 which included a capital raising of £1,250,000 on their current main residence in order to do so. The client’s income had a degree of complexity in that it comprised NHS employed income as well as private practice income. With regard to the private practice income, the client had only been trading as a Ltd company for less than one year which needed to be fully recognized in order to achieve the desired lending amount. The client required an interest only facility as they plan to sell the property within the next 9 years and therefore did not want a capital & repayment mortgage.
We were able to identify a private bank that would be prepared to take the client’s short period of Ltd company income into account which meant the clients could borrow the desired amount they needed to purchase the new property. The most suitable facility we were able to source was a 2 year tracker rate at 1.99% over base with no early repayment charge. This provided the client the greatest flexibility in relation to when they decide to sell the property, with a bank arrangement fee of 0.5%.
|£1.7 million (68% LTV on property value of £2.5 million)
|1.99% above base rate (currently 0.5%), current pay rate 2.49%
|Overall cost for comparison 3.2% APR representative variable
|Lender’s arrangement fee:
|0.5% of loan amount
|Early repayment charges:
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 these terms 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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 3.2% APR representative variable based on 9 years at 2.49%, lender’s arrangement fees of 0.5% x £1.7 million (£8,500), legal and valuation fees of £3,500. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
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.
Your home may be repossessed if you do not keep up repayments on your mortgage.