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The client is a foreign national living and working in Switzerland. He wanted to purchase a main residence in the UK valued at £1.6 million. He had a buy to let (BTL) property in London which was valued at £1 million, but it had an existing £200,000 mortgage. He also had £200,000 of cash that he was happy to put down towards the purchase. The client therefore needed a mortgage of £1.4 million to purchase the new main residence in the UK, and pay off the existing mortgage on his BTL property.
We were unable to arrange the mortgage with a high street lender because the client could only show offshore income and was not a UK taxpayer. The client also wanted an interest only mortgage to suit his income stream as he was reliant on bonuses to repay the capital.
Having reviewed the client’s situation, largemortgageloans.com selected a short list of private banks to see which would offer the best terms to the client. We were able to arrange a £1.4 million mortgage secured across both properties to repay the existing £200,000 mortgage on his buy to let property and purchase a new residential property on an interest only basis.
|Loan amount:||£1 million (63% LTV on residential property valuation of £1.6 million)|
|Rate:||Bank of England Bank Rate plus 2.49% (pay rate of 2.99%)|
|APR:||Overall cost for comparison 3.2% APR representative variable.|
|Lender’s arrangement fee:||0.5% of loan amount|
|Early repayment charges:||None|
|Loan amount:||£400,000 (40% LTV on BTL property valuation of £1 million)|
|Rate:||Bank of England Bank Rate plus 3.25% (pay rate of 3.75%)|
|APR:||Overall cost for comparison 4.1% APR representative variable.|
|Lender’s arrangement fee:||1% of loan amount|
|Early repayment charges:||None|
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 3.2% APR representative variable based on 5 years at 2.99%, lender’s arrangement fees of 0.5% x £1 million (£5000), legal and valuation fees of £1684. Overall cost of comparison 4.1% APR representative variable based on 5 years at 3.75%, lender’s arrangement fees of 1% of £400,000 (£4000), legal and valuation fees of £970. 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% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £100,000 the fee would be £1,000 of which £250 would be payable on application. The precise amount will depend on your circumstances.