5.5 times salary secures £500,000+ mortgage

by Aaron Strutt

Nov 01 2017

Our clients asked for help to secure a 5.5 times salary mortgage to enable them to purchase a new home in Surrey.

After approaching another broker they decided to call Trinity Financial as they were struggling to obtain a large enough mortgage.

They were selling their existing house and using the remaining funds to put towards the purchase.

Solution

After Trinity’s adviser assessed their income and financial situation he researched the market.

As the clients had a combined salary of over £100,000 they qualified as premier customers with a large bank. This gave them access to 5.5 times salary mortgages rather than the bank’s standard five times multiple.

The lender provided an impressively low two-year fixed rate mortgage and even paid for the property valuation. A mortgage offer was produced within three weeks.

Case details

Property location: Surrey

Value: £1,000,000+

Mortgage: £550,000

Rate: 1.14% fixed until 31 October 2019

Reversion rate: The bank’s standard variable rate, currently 3.74%.

The overall cost for comparison is 3.45% APRC representative.

Lender’s arrangement fee: £1,499

Mortgage term: 35 years

Repayment type: Full capital repayment.

Loan-to-value: 53%

Early repayment charge: 3% until 31 October 2019.

Overpayments: Up to 10% per annum without charge.

Representative example: A mortgage of £553,000 payable over 35 years, initially on a fixed rate for 24 months at 1.14% and then on a variable rate of 3.74% for the remaining 23 years, would require 25 monthly repayments of £1,601.71 followed by 395 monthly repayments of £2,323.04. The total amount repayable would be £957,884.55 made up of the loan amount, plus interest (£403,144.55) and fees of £1,499. The overall cost for comparison is 3.45% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

Call Trinity Financial on 020 7016 0790 to secure a 5.5 times salary mortgage.