£950,000 interest-only mortgage for client locking into 10-year fix
Our clients asked for help to secure a competitively priced ten-year fixed rate mortgage on an interest-only basis.
After selling their home and finding a new property, they had a large deposit. They wanted to take advantage of the ultra-low rate environment and secure a ten-year fix to make sure they had stable monthly repayments.
The main earner was a limited company director, and he wanted us to work with a lender used to lending to the self-employed.
Solution
After assessing our client's company accounts and researching the market to find the most competitively priced ten-year fix, our broker applied to a large high street bank.
The lender was happy to provide larger loans on ten-year fixes and use the sale of the property as a method for repaying the mortgage.
Trinity secured a mortgage offer and the lender provided a free property valuation. Case details
Property: London
Value: £2,000,000
Mortgage: £950,000
Rate: 2.59% fixed until 2 July 2027
Reversion rate: The bank’s standard variable rate, currently 4.49%.
The overall cost for comparison is 3.5% APRC representative.
Lender’s arrangement fee: £999
Mortgage term: 22 years
Repayment type: Full capital repayment.
Loan-to-value: 45%
Early repayment charge: 6% of the loan amount until 02 July 2027.
Overpayments: Up to 10% per annum without charge.
Representative example: A mortgage of £950,000 payable over 22 years, initially on a fixed rate for 120 months at 2.59% and then on a variable rate of 4.49% for the remaining 12 years, would require 121 monthly repayments of £2,052.57 followed by 143 monthly repayments of £3,558.32. The total amount repayable would be £1,258,112.84 made up of the loan amount, plus interest (£371,943.18) and fees of £999. The overall cost for comparison is 3.5% 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 ten-year fixed rate mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
