Trinity secure family mortgage by combing three of their incomes

by Aaron Strutt

Apr 12 2019

Trinity Financial recently helped a family to purchase a property by combing three of their incomes.

Two parents and their daughter had been renting and found their ideal property to buy. They knew they would have to use all of their incomes to borrow enough money to fund the new purchase.

Solution

A selection of lenders allow three or four applicants on a mortgage but they do not always have generous income multiples.

Our broker approached a specialist lender available to a very limited panel of brokers and explained the borrower's overall situation. It agreed to have three names on the mortgage and use all their income. 

As the clients had a good deposit and a clear credit history, the lender provided a five-times salary mortgage. The offer was produced within a week.

Case details

Property type: Detached house

Value: £500,000

Mortgage: £425,000

Rate: 1.95% until 30 April 2021

Reversion rate: The bank’s standard variable rate, currently 4.74%.

The overall cost for comparison is 4.29% APRC representative.

Lender’s arrangement fee: £995

Mortgage term: 23-years

Repayment type: Full capital repayment

Loan-to-value: 85%

Early repayment charge: 3% until 01/4/2019, 2% until 01/5/2020

Overpayments: 10% per annum allowed

Representative example: A mortgage of £425,000 payable over 23 years, initially on a 1.95% fixed rate until 30 April 2021 and then on a variable rate of 4.74% for the remaining 21 years, would require 25 monthly repayments of £1,916.60 followed by 251 monthly repayments of £2,482.17. The total amount repayable would be £671,149.67 made up of the loan amount plus £244,944.67 interest and £995 arrangement fee. The overall cost for comparison is 4.29% 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 three or four income mortgage