£1.15 million buy-to-let remortgage for client in Dubai being forced to repay loan
Trinity Financial recently secured a mortgage for a British expat living and working in Dubai.
He was the CEO of an investment firm in Dubai and wanted to remortgage the five-bedroom property he used to live in before relocating overseas.
His mortgage term was coming to an end, and the lender was putting him under pressure to repay the loan in full.
After previously speaking to two other brokers who could not obtain a high enough loan based on overall affordability he was particularly frustrated.
One broker told him the rental income was not sufficient and the rate would be over 4%. He also said the maximum loan would be capped at 60% loan-to-value.
Trinity’s broker found a private bank happy to lend over 70% loan-to-value and structure a deal using his personal income.
It did not require any assets under management as part of the deal.
Case details
Value: £1,600,000
Mortgage: £1,150,000
Rate: 2.89% - currently 2.39% above the lender’s base rate until 05 October 2023.
Reversion rate: The bank’s standard variable rate currently 4.75%.
The overall cost for comparison is 4.6% APRC representative.
Lender’s arrangement fee: 1% of loan amount (£11,550).
Mortgage term: 10 years
Repayment type: Interest-only
Loan-to-value: 72%
Early repayment charge: None.
Overpayments: Unlimited.
Representative example: A mortgage of £1,150,000 payable over 5 years, initially on a five-year tracker rate and then on a variable rate of 4.75% for the remaining 5 years, would require 60 monthly repayments of £2.769 followed by 60 monthly repayments of £4,552. The total amount repayable would be £1,600,815 made up of the loan amount, plus interest (£) and fees of £11,550. The overall cost for comparison is 4.6% 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 an expat buy-to-let remortgage
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