£540,000 remortgage for lawyer to purchase buy-to-let property with cash
Trinity Financial recently arranged a £540,000 remortgage for a client to purchase a buy-to-let property with cash.
He planned to borrow as much money as possible to purchase a property in the north of England because of the strong rental returns.
They wanted to secure a decision in principle to ensure they could borrow enough money before they agreed to purchase a property but were struggling to find a suitable lender.
Our client approached another broker but they could not get an agreement in principle or raise enough money.
Solution
Trinity’s broker approached a lender offering up to 90% loan-to-value for borrowers remortgaging to purchase new properties. It provided some incredibly cheap two-year fixed rates.
The bank did not limit transactions to £500,000 or need to know the full details of the intended property purchase.
Once the mortgage completed, the funds were transferred directly to our client's bank account.
Case details
Property type: Four-bedroom house
Value: £540,000
Mortgage: £1,006,000
Rate: 1.99% until 31/10/2021
Reversion rate: The bank’s standard variable rate, currently 4.24%.
The overall cost for comparison is 4% APRC representative.
Lender’s arrangement fee: £995
Mortgage term: 35 years
Repayment type: Full capital repayment
Loan-to-value: 90%
Early repayment charge: 2% of the loan in year 1, 1% in year 2.
Overpayments: 10% per annum
Representative example: A mortgage of £540,000 payable over 30 years, initially on a 1.99% fixed rate until 31/10/2021 and then on a variable rate of 4.24% for the remaining 33 years, would require 25 monthly payments of £1,789.34 followed by 395 monthly payments of £2,435.90. The total amount repayable would be £1,006,913 and a £995 arrangement fee. The overall cost for comparison is 4% 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 mortgage
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