£650,000 mortgage for couple raising funds for home improvements up to 90% loan-to-value

by Aaron Strutt

Jul 10 2019

Trinity Financial recently arranged a residential remortgage for a couple releasing funds to complete the refurbishment work on their property.

They were approaching the end of their existing fixed-rate and wanted to borrow the maximum amount possible while securing another competitively priced mortgage.

Their application was tricky because the clients required a lender to offer 90% loan-to-value of £725,000 at a sensible rate.

Solution

Even though there is a limited number of lenders providing capital raising at 90% loan-to-value, Trinity Financial had access to an exclusive product suitable for our clients.

The two-year fixed-rate product enabled them to borrow over £70,000 taking them up to 90% loan-to-value.

The mortgage was on a full capital repayment basis with the term up to the applicants 75^th birthday.

Case details

Property type: Four-bedroom house

Value: £725,000

Mortgage: £653,000

Rate: 2.29% 31 October 2021

Reversion rate: The bank’s standard variable rate, currently 4.25% until 31 October 2024 and the 4.99% for the remaining term.

The overall cost for comparison is 4.5% APRC representative.

Lender’s arrangement fee: £995

Mortgage term: 28 years

Repayment type: Full capital repayment

Loan-to-value: 90%

Early repayment charge: 2.5% before 31/10/20 followed by 1.5% before 31/10/21

Overpayments: 10% per annum

Representative example: A mortgage of £653,000 payable over 28 years, initially on a 2.29% fixed rate until 31 October 2021 and then on a variable rate of 4.99% for the remaining 26 years, would require 27 monthly repayments of £2,601.75 followed by 35 monthly payments of £3,244.79 and then 279 payments of £3,483.24. The overall cost for comparison is 4.5% 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