£850,000 interest-only remortgage to purchase property in Florida
Trinity Financial recently arranged an £850,000 interest-only remortgage for two clients purchasing a property in Florida.
They specifically wanted a 75% loan-to-value interest-only mortgage on their main residence to buy the overseas property in cash and keep their monthly payments as low as possible.
As directors of a limited company in the property sector, our clients both received a salary plus dividends.
Solution
Our broker found a challenger bank with a particularly useful interest-only only policy offering best buy rates.
The lender agreed to provide a 75% loan-to-value mortgage using the sale of the property, and their pension fund as the repayment vehicle.
The mortgage offer was produced within a week enabling the clients to get access to the funds to purchase the property in Florida.
Case details
Property type: Detached house
Value: £1,100,000
Mortgage: £850,000
Rate: 2.24% until 31 July 2024
Reversion rate: The bank’s standard variable rate, currently 4.25%.
The overall cost for comparison is 3.93% APRC representative.
Lender’s arrangement fee: £995
Mortgage term: 25-years
Repayment type: Full interest-only
Loan-to-value: 75%
Early repayment charge: Until 31 July 2024
Overpayments: 10% per annum allowed
Representative example: A mortgage of £850,000 payable over 25 years, initially on a 2.24% fixed rate until 31 July 2024 and then on a variable rate of 4.25% for the remaining 20 years, would require 60 monthly repayments of £1,540 followed by 240 monthly repayments of £2,921.88. The total amount repayable would be £1,620,850 and £999 arrangement fee. The overall cost for comparison is 3.93% 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 an interest-only mortgage
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