£850,000 mortgage for Belgian client using bonus income to buy first home
Trinity Financial recently arranged a higher loan-to-value mortgage for a Belgian client living and working in UK.
He asked Trinity to secure him a fast mortgage offer and a competitively priced two-year fixed rate.
Working as a banker in London, he regularly received bonuses and required a lender to use 60% of it for mortgage affordability purposes.
He had already started the application process with another broker, but they stopped contacting him and provided minimal case progress updates.
Solution
Trinity specialises in arranging mortgages for banking professionals with bonuses.
Our broker contacted a large high street bank accepting larger than average percentages of the latest year’s bonus. This was helpful because the most recent bonus was higher than the year before.
The bank provided an impressively cheap two-year fixed rate of 1.59% and produced a mortgage offer within five working days.
To reduce the monthly mortgage repayments he opted for a 35-year mortgage term with the intention of overpaying up to 10% of the outstanding balance each year.
Case details
Property type: Detached house
Value: £1,000,000
Mortgage: £850,000
Rate: 1.59% until 30 September 2021
Reversion rate: The bank’s standard variable rate, currently 4.24%.
The overall cost for comparison is 3.93% APRC representative.
Lender’s arrangement fee: £995
Mortgage term: 35-years
Repayment type: Full capital repayment
Loan-to-value: 85%
Early repayment charge: Until 30 September 2021
Overpayments: 10% per annum allowed
Representative example: A mortgage of £850,000 payable over 35 years, initially on a 1.59% fixed rate until 30 September 2021 and then on a variable rate of 4.24% for the remaining 33 years, would require 26 monthly repayments of £2,640.20 followed by 394 monthly repayments of £3,811.60. The total amount repayable would be £1,572,275 made up of the loan amount plus interest £720,415.6 and £995 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 a lower deposit and bonus income mortgage
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