£800,000 mortgage to purchase property split into five self-contained flats back into large family home
Trinity Financial recently helped a couple to secure a mortgage to purchase a large property split into five self-contained flats.
Our clients had been searching for a property for a while and when they found their ideal home they wanted to act quickly and secure a fast mortgage offer.
The £1.2 million property needed some work as it was split into five self-contained flats. The clients were concerned it would be hard to obtain a mortgage and wait for the local authority to confirm it did not require planning consent to convert it back to a residential dwelling.
The £800,000 mortgage was agreed through a small building society on the condition the client removed four kitchens between exchange and completion.
The lender offered a rate of 2.99% (2.50% discounted rate for five years).
Case details
Property type: Large house split into five flats
Value: £1,200,000
Mortgage: £800,000
Rate: 2.99% - rate with a 2.50% discount from SVR for five years
Reversion rate: The bank’s standard variable rate currently 5.49%.
The overall cost for comparison is 4.6% APRC representative.
Lender’s arrangement fee: 0.75% of loan amount (£6,000).
Mortgage term: 24 years
Repayment type: Full capital repayment
Loan-to-value: 67%
Early repayment charge: 3% of the mortgage for two years.
Overpayments: Up to 20% per annum.
Representative example: A mortgage of £806,000 payable over 24 years, initially on a five-year discounted variable rate and then on a variable rate of 5.49% for the remaining 24 years, would require 60 monthly repayments of £3,925.17 followed by 228 monthly repayments of £4,824.76. The total amount repayable would be £1,336,743.53 made up of the loan amount, plus interest (£) and fees of £6,000. The overall cost for comparison is 4.6% APRC representative.
Affordability is calculated on an individual basis. 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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