£650,000 remortgage from capital repayment on to full interest-only to reduce monthly costs
Key features:
- Client remortgaged away from Metro Bank to get a better rate
- Case agreed through bespoke underwiring team after initially failing affordability
- 2.24% five-year fix on interest-only with option to make overpayments
Our client
Our client asked for help to secure a new fixed-rate mortgage after his existing lender offered him uncompetitive terms to remain with the bank once his fixed-rate expired. He was an employed IT director keen to swap to interest-only to reduce his monthly outgoings, but he wanted a great deal. The client was in his 60’s and required a shorter term. His house was worth just over £900,000.
How did we help?
Trinity's broker researched the market to check with lenders who were offering competitive interest-only deals using the property's sale as the repayment vehicle. After running the client's income and expenditure through one of the most generous interest-only lender's affordability calculator the applicant did not qualify; so he called the bank and got the application agreed as an exception.
The lender provided a ten-year term with a free property valuation and legal fees service to reduce the cost of switching.
What was the rate?
A 2.24% rate fixed until 30/04/2026, and after the fixed period, it reverted to the banks 4.55% standard variable rate. The overall cost for comparison was 3.1% APRC. The arrangement fee was £1,499, and early repayment charges applied. Up to 10% of the mortgage could be repayment each year without charge.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
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