£1.6 million part fixed and part tracker mortgage for Marylebone property purchase
What was the situation?
Our clients asked for help to secure a mortgage after their offer to buy a £3 million property in Marylebone was accepted.
The next time buyers had found a stunning home to purchase and required a £1.6 million mortgage to top up their large deposit.
They had not sold their existing main residence and wanted us to find a lender happy for them to have two residential properties. They required the new mortgage to be structured so they could make lump sum overpayments to repay part of the debt when their property was sold.
They wanted a flexible mortgage through one of the larger lenders with competitively priced rates.
How did we help?
Once our broker spoke to his clients to fully understand their financial situation, he went to the market to assess their options.
As they had a property in the background that would be sold, he approached lenders, allowing borrowers to take part fixed and part tracker mortgages at the same time. He specifically targeted lenders offering tracker rates without early repayment charges.
Working as high-level managers, the couple had a large combined salary, which meant they comfortably met the affordability requirements for two mortgages.
After one big bank offering rates was unwilling to issue a split fixed and tracker deal, he approached another lender offering some of the lowest rates. They were keen to lend the money.
How was the mortgage structured?
The mortgage was set up with half of the funds on a two-year fix and the remaining balance on a Bank of England base rate tracker without early repayment charges. If required, they could also pay up to 10% off the fixed rate element of the mortgage.
This mortgage provided them with the option to pay off the tracker part of the debt in a lump sum, so when they sell their previous home, they can reduce their outstanding balance without paying an early repayment charge.
By taking a two-year fix, our clients could reassess the market in two years when fixed rates may be cheaper.
Lending solutions with Trinity Financial
Are you looking to remortgage and need expert advice? We’re here to help you find a solution – no matter how complex your circumstances.
At Trinity Financial, our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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