Another let-to-buy mortgage arranged through Trinity Financial
Our clients wanted to move into a bigger property but they were not keen to sell their old home.
House prices have increased significantly in their area and they thought it would be a good idea to keep their home as an investment property if possible. They also did not have a sufficient deposit to buy another house.
Case details and solution
As the client had a large amount of equity in their existing home it was possible to remortgage it to a buy-to-let lender. This enabled them to secure a low mortgage rate and then let the property out.
During this remortgage process Trinity arranged for enough equity to pulled out of the property to be put towards the deposit for a new and larger home in south London.
Remortgage of their existing home to raise a deposit and turn into a buy-to-let
Property: Two-bedroom flat in London.
Mortgage requirements: Clients needed to raise an additional £75,000 to put towards their deposit - this is on top of their £200,000 mortgage.
Buy-to-let rate: 3.69% two-year fixed rate with a £1,999 arrangement fee. The mortgage was taken over a 25-year term.
The overall cost for comparison is 4.5% and this mortgage was taken on an interest-only basis.
The early repayment charges were 3% of the mortgage for two-years. After the fixed rate the mortgage reverts to their 4.95% standard variable rate.
Purchase of the new home using the funds raised from remortaging their existing property
Residential mortgage for £400,000 fixed at 3.35% for two-years. The arrangement fee is £999 and there are 3% early repayment charges for the first two-years. After the fixed rate the mortgage reverts to their 4.99% standard variable rate.
Trinity can help:
If you have equity in your home and would like to arrange a let-to-buy mortgage, call us on 020 7016 0790 or email enquiries@trinityfinancialgroup.co.uk
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