Six times joint salary mortgage for couple purchasing £950,000 property

by Aaron Strutt

Dec 06 2018

Trinity Financial recently arranged a six times salary mortgage for a couple moving up the property ladder.

Our clients had found a £1 million property they wanted to buy, but they needed a lender offering income stretch mortgages.

Trinity’s broker approached a specialist intermediary lender providing up to six times salary mortgages to applicants earning over £100,000.

As the clients were securing such a high-income multiple, they had to pass a strict affordability assessment. 

The application was submitted once the sale of an existing property went through, and the lender provided an offer in three weeks.

The mortgage was also arranged on a part interest and part capital repayment basis to keep the monthly costs low over the short term.

Case details

Value: £1,000,000

Mortgage: £750,000

Rate: 3.09% two-year fix

Reversion rate: The bank’s LIBOR tracker currently 5%.

The overall cost for comparison is 4.79% APRC representative.

Lender’s arrangement fee: £1,875

Mortgage term: 25 years

Repayment type: Full capital repayment

Loan-to-value: 75%

Early repayment charge: Yes - for two years

Overpayments: No overpayments

Representative example: An interest mortgage of £750,000 payable over 25 years, initially on a 3.09% fixed rate for two years and then on a variable rate (currently 5%) for the remaining 23 years, would require 24 monthly repayments of £3,591.79 followed by 276 monthly repayments of £4,327.44. The total amount repayable would be £1,283,519.40 made up of the loan amount, plus interest (£530,576.40) and £1,875 (product fee), £145 (final repayment charge), £18 (completion fee). The overall cost for comparison is 4.79% 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 income stretch mortgage