£1.3m mortgage for property manager raising funds to purchase new home
We were approached by the director of a property management company looking to release equity from his buy-to-let property to use as a deposit to buy a new residential home.
He was keen to purchase the new property and ensure enough funds were left over for him to buy another small investment flat.
Case details and solution
In order to secure a large enough buy-to-let mortgage, we approached a lender offering generous acceptance criteria with the ability to offer bigger loans.
Once the buy-to-let refinance funds were in place, we arranged a residential mortgage with a challenger bank happy to lend to self-employed borrowers.
In order to get the application through promptly, we worked closely with our contacts at the mortgage lender and his estate agents.
Details of the residential purchase:
Property: House valued at £2 million located in Hammersmith.
Loan amount: £1.3million. (A large part of this deposit was generated for his buy-to-let property).
Lenders arrangement fee: £999 and added to the loan amount.
Rate: Two-year fix at 2.69%.
APR: The overall cost for comparison is 2.5%.
Term: 25 years.
Repayment type: The mortgage was taken on a part interest-only and part capital repayment basis.
Loan-to-value: Approximately 70% of the property value.
Early repayment charge: 2% in year 1 and 1% in year 2.
If you would like help to secure a mortgage to purchase a property, call Trinity on 020 7016 0790. You can also email: enquiries@trinityfinancialgroup.co.uk
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