£600,000 remortgage to release equity for property extension
Our client asked for help to remortgage away from their current lender and release £100,000 equity to complete a property extension.
They intended to do some fairly extensive works to their home and significantly increase the value of the property.
The planned works should increase the amount of equity in the property and enable the client to refinance onto a cheaper fixed rate in the future.
Solution
As the mortgage was due to revert on to a standard variable rate, we promptly submitted the application for an early repayment charge free tracker rate. The product enables clients to lock into a fixed rate at any time without charge.
Mortgage lenders offer cheaper rates to clients with more equity in their property, so once the property extension is completed we can approach the bank for a fresh valuation and a product transfer.
The mortgage was spread over a 26-year term to ensure the monthly repayments were as affordable as possible.
Property: House in Surrey
Value: £775,000
Mortgage: £600,000
Rate: 1.92% - 1.42% over the BBBR for two years.
The overall cost for comparison is 3.7% APRC representative.
Reversion rate: 3.49% over the BBBR for the remaining term of the mortgage.
Lender’s arrangement fee: £999
Mortgage term: 26 years
Repayment type: Full capital repayment basis.
Loan-to-value: 80%
Early repayment charge: No early repayment charges.
Overpayments: Unlimited repayments allowed.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
For help to remortgage and release equity call Trinity Financial on 020 7016 0790.
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