£400,000 remortgage to pay school fees for four children
Key features:
- Lender ignored ongoing school fees in affordability
- 1.99% ten-year fixed rate
- Remortgage to pay school fees for four children
Our client
Our client asked for help to remortgage his unencumbered £1.25 million property to release £400,000 to pay for his four children's school fees. He was keen to ensure he had the payments available and secure a great ten-year fix for long term payment security.
Why was it difficult?
Even though he had a lot of equity in his property and the mortgage was only 2.5 times salary, the ongoing £12,000 a term cost meant that most lenders deemed the repayments as unaffordable.
How did we help?
Trinity's broker found a large bank providing competitively priced ten-year fixes willing to ignore the school fees from its affordability calculations. The lender understood our client was raising funds to ensure he had the funds to pay the fees.
What was the rate?
The mortgage was a 1.99% rate fixed until 31/10/2030, and after the fixed period it reverted to the banks 3.59% standard variable rate. The overall cost for comparison is 2.6% APRC. The arrangement fee was £995, and early repayment charges applied. The mortgage had a 25-year term.
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