Are you looking to secure a high value bridging loan on a complex mortgage case? 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 or complex mortgage case, please contact us on 020 7519 4984 or email us.
Case profile
At Largemortgageloans.com we enjoy tackling the trickier cases that often land on our desks. One such example occurred recently when a client approached us needing to refinance a property they had previously lived in but was now being used as a holiday let. The client had secured the property through short-term bridging finance and needed to exit this loan as soon as possible.
Multiple complications affected this case. Firstly, the fact that the client had previously used the property as his main residence meant this was now a “consumer buy-to-let” i.e. where the property was not initially purchased for commercial purposes. Not all lenders allow for this kind of deal, so the pool of available options was limited. Further to this, holiday lets are not assessed in the same way as regular buy to let properties and the client had little-to-no track record or rental history for this property. Finally, with a loan size of £1.05m required against the £1.5m value of the property – it was a higher loan to value than most lenders would be comfortable with for a holiday let.
Solution
Again, our strong lender relationships across the spectrum of specialist and niche markets, allowed us to narrow down our search. Our experts were able to find a regional building society with an ability to look at the case on its whole merits, rather than adopting a “computer says no” approach. We were able to get 2 local lettings agents to confirm the holiday let income for the property in the absence of a rental history, and with direct access to senior underwriters our brokers were able to present the case to key decision makers and find a fantastic solution for the client – who moved from a 12% rate of interest to 2.99% per annum on an interest-only basis over a 20 year term.
Deal Highlights
| Loan amount: | £1,050,000 |
| Rate: | Discounted rate of 2.99% |
| Loan To Value: | 70% |
| Term: | 20 Years |
| Type: | Interest only |
| Loan purpose: | Remortgage |
| Lenders arrangement fee: | £798 |
| Early repayment charges/Exit fee: | 5% in year one, 4% in year two, 3% in year three, 2% in year four & 1% in year five. |
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 3.10% APRC representative variable based on 240 payments at a rate of 2.99%. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes. For example, if the interest rate rose to 11.99% the APRC could increase to 12.8%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
The Financial Conduct Authority does not regulate some aspects of bridging finance.
To make an enquiry call us on 020 7519 4984 or visit our website.
