Our Case Studies
Our Case Studies £3.15million mortgage placed by the specialists in large mortgage loans

£3.15million mortgage placed by the specialists in large mortgage loans

Need a multi-million pound private bank mortgage? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large mortgage case, please contact us on 020 7519 4984 or email us.

Case Profile

Our clients, a professional couple, approached us as they wanted to raise an additional £600,000 against their residential property.

They were looking to convert their property back to a single dwelling. The property, located in Central London, was a 5 storey house purchased in 2012 which had previously been renovated to include a self-contained flat in the basement.

The extra funding would bring their total lending to £3.15million or 70% LTV against the property now worth £4.5m and the clients were looking to maintain their mortgage arrangements on an interest only basis.

The clients were in their 50’s and also had an outstanding mortgage balance secured against a second home therefore they did not meet the affordability criteria of their existing lender. They were also unable to meet the lender’s criteria regarding a satisfactory repayment vehicle, as they intended to sell the property and down-size upon retirement.

Solution

Using our extensive knowledge of private banks, we were able to source a private bank remortgage with a loan amount of £3.15m on an interest only basis over a term of 5 years, based upon a current property valuation of £4.5m.

The private bank based the affordability on income alone, not taking into account the mortgage on the second property.

We also highlighted to the lender that the property would be worth at least £5.7m once the works had been completed and therefore were able to satisfy them that once the couple had downsized there would be sufficient equity to repay the interest only mortgage.

Deal Highlights

Loan amount:£3.15million
Rate:5% margin over 3 month libor (capped at 1%) to give a current pay rate of 6% for 12 months during the development works, followed by 3.75% margin over 3 month libor (capped at 1%) to give a current pay rate of 4.75% after completion for a further 48 months
APR:Overall cost for comparison 5.3%APR representative variable
LTV:70%
Term:5 years
Type:Interest only
Loan purpose:Residential remortgage
Lender’s arrangement fee:1% of the loan amount
Early repayment charges:3% in year 1, 2% in year 2, and 1% in year 3

Notes

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 5.3%APR representative variable. Lender’s arrangement fees of 1% of the loan amount. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

largemortgageloans.com is a trading name of largemortgageloans.com Ltd. A fee of up to 1.17% of the mortgage amount is payable, of this 20% is payable on application and the remainder on completion, e.g. on a mortgage of £1,000,000 the fee would be £11,700 of which £2,340 would be payable on application and the remainder of £9,360 on completion. The precise amount will depend on your circumstances.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage.

Return to Our Case Studies

This Month’s Top Fixed Rate

Fixed rate
Initial rate: 1.35%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.46%

Get This Rate

This Month’s Top Variable Rate

Variable rate
Initial rate: 0.97%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.37%

Get This Rate

Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

Latest Articles/News

Case Studies

Successful negotiation of a bespoke, multi-million pound lending solution A…

Latest/Related News

It’s been an incredibly busy week, with the action beginning on Monday wi…

Press Release

States proposal to waive document duty on bonds hailed as a victory for mor…

Press Coverage

Could a retirement mortgage help you stay in YOUR home?…

LML Brochure

Download our brochure to find out more about Largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials

Close

Live chat with
our team now

Chat

LargeMortgageLoans.com