£350,000 buy-to-let remortgage to purchase new property in cash
Case details
Our client wanted to expand her property portfolio and purchase another investment flat in Scotland.
As she already owned a buy-to-let property in London that had increased in price over the last few years, she planned to release some of the equity and buy another property in cash.
Solution
The property she was remortgaging was on a standard variable rate and it did not have any early repayment charges. This enabled us to approach other banks with more competitive rates.
Our adviser arranged a remortgage to pay off the existing £150,000 mortgage. He also secured an additional £200,000 - raising the loan amount to £350,000.
Once the mortgage completed and the funds were transferred, our client used the cash to buy the new property outright.
Source: Existing client referral
Property: Three bedroom flat in London
Value: £700,000
Mortgage: £350,000
Rate: 2.19% fixed until 31/10/2017
The overall cost for comparison is 4.3% APR
Reversion rate: Standard variable rate currently 4.49%
Lenders arrangement fee: £1,995
Mortgage term: 20-year term
Repayment type: Interest only
Loan-to-value: 50%
Early repayment charge: 3% before 31/10/2016, 2% before 31/10/2017
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
For help to release funds from your buy-to-let property, call Trinity on 020 7016 0790.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
