£650,000 remortgage for couple with house built in 1700s raising funds to pay private school fees
Trinity Financial recently arranged a £650,000 remortgage for a couple who needed to raise £250,000 on top of their existing mortgage to pay their three children’s remaining private school fees.
The finance director and marketing professional were coming to the end of their fixed rate with a large bank and wanted to raise additional funds to pay their private school fees before the VAT is introduced.
Did they have a complex situation?
When they asked their existing lender if they could raise the additional funds as part of the rate switch process, they went through a mortgage affordability check. The check included the full monthly repayments of the school fees rather than the repayments that would be due after the lump sum, which meant that they could not borrow the required amount.
Why did they need our help?
Our clients wanted us to help them secure a new rate while raising the £250,000 using their basic salary plus bonus income. Another issue was that most lenders would not advance the funds for school fees without repaying the balance, even though the remaining amount owed to the private school was relatively small. Their house was built in the 1700s, which is too old for some lenders, especially as more lenders prefer lending to borrowers with energy-efficient homes.
How did Trinity’s broker help?
Trinity’s broker assessed the mortgage market to find a lender willing to offer the full £650,000 with a small balance remaining to be paid for school fees.
After contacting a long list of lenders, she found one willing to provide the entire loan amount without requiring the Energy Performance Certificate. They asked for a letter from the school to confirm that the school fees could be paid in a lump sum.
The mortgage offer was produced in under three weeks after the property was valued at £1.25 million.
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The information contained within was correct at the time of publication but is subject to change.
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