5.5 times income £725,000 interest-only mortgage for client with new job

by Aaron Strutt

Jan 29 2021

Key features:          

• 1.59% five-year fix with option to make 10% overpayments   
• Client told by another broker he would not be able to access a 5.5 times income mortgage
• Recently started new job and had one payslip 

Our client         

Our client called and asked for help to secure an income stretch mortgage after his existing broker struggled to get him enough money. He wanted to minimise his monthly repayments and access the lowest possible rate. He had recently started a new job and needed a lender to work off of his contract and payslip. He was buying his first property and had a clear credit history. 

How did we help?       

Trinity's broker contacted one of the largest banks still offering 5.5 times salary for borrowers earning over £100,000. The lender offers some of the cheapest five-year fixes providing longer-term payment security and has a can-do attitude so it can be more flexible for wealthier borrowers.  

Impressively the lender was able to provide £700,000 on interest-only and the remaining £25,000 on capital repayment. This kept the monthly payments to an absolute minimum.  

Why was it difficult? 

There are not many lenders offering 5.5 times salary mortgages on interest-only at such a low rate. Many of the providers offering more than five times salary charge a much higher rate and often have percentage based arrangement fees.  

What was the rate?         

A 1.59% rate fixed until 02/1/2026, and after the fixed period it reverted to the banks 3.35% standard variable rate. The overall cost for comparison is 2.9% APRC. The arrangement fee was £999, and early repayment charges applied. The mortgage had a 25-year term.        

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation