£978,000 mortgage to convert self-contained flats into main residence
Trinity Financial recently arranged a mortgage to help a couple purchase a house split into two self-contained flats.
They wanted a fast mortgage offer to purchase a double fronted Victorian property on their favourite road. Even though the house was split into two self-contained flats they were happy to carry out the renovation work and bring it back to one property if they could get a mortgage.
As they had recently sold their home so they had a large deposit but as they were buying for £1.63 million, so they required a 60% loan-to-value mortgage (£978,000) to purchase the property.
Trinity’s broker spoke to a large high street lender offering extremely low rates and they agreed to provide funding on the basis the clients converted the property back into one main residence.
The bank offered a rate of 1.71% fixed until 31/05/2023 with an arrangement fee of £1,598.
Case details
Property type: Two self-contained flats
Value: £1.63 million
Mortgage: £978,000
Rate: 1.71 fixed until 31/05/2023
Reversion rate: The bank’s standard variable rate currently 3.94%.
The overall cost for comparison is 3.10% APRC representative.
Lender’s arrangement fee: £1,598
Mortgage term: 25 years
Repayment type: Full capital repayment
Loan-to-value: 60%
Early repayment charge: Yes – until 31/05/2023.
Overpayments: Up to 10% per annum.
Representative example: A mortgage of £978,000 payable over 25 years, initially on a five-year fixed rate and then on a variable rate of 3.94% for the remaining 20 years, would require 62 monthly repayments of £4,008.61 followed by 238 monthly repayments of £4,901.51. The total amount repayable would be £1,417,417.20 made up of the loan amount, plus interest (£789,080.02) and fees of £749. The overall cost for comparison is 3.3% 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.
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