Two buy-to-let remortgages and new residential mortgage to purchase new family home
Trinity Financial recently arranged two buy-to-let remortgages and a new residential mortgage to enable our client to purchase a new family home.
He had found a property he wanted to buy but did not have a large enough deposit or enough money to pay for the stamp duty.
Our client did not want to sell his existing home because it was in a good location and he thought it would increase in valuation over the longer term. He also had an investment property with lots of equity.
He had a senior role at a leading financial services firm and had a good income.
Solution
As the client already owned two properties and had a good income, it was a case of sourcing the lowest buy-to-let rates and arranging a new residential mortgage.
Trinity's broker switched the client's existing home onto a buy-to-let so he could keep the property and benefit for any capital growth and release funds pushing the loan-to-value up to 60%.
As the buy-to-let mortgage was on a tracker rate and it did not have any early repayment charges, he also remortgaged the product onto a competitively priced fixed rate and released funds. The loan-to-value increased to 50%.
Our client wanted to lock into a longer-term fixed rate, so we approached a building society providing some of the lowest rates at 85% loan-to-value.
To ensure the deposit and stamp duty funds were in place enable our client to purchase the property the buy-to-let remortgages completed a week before the new purchase was due to complete.
Case details
Property type: Five-bedroom house
Value: £765,000
Mortgage: £650,000
Rate: 2.15% fixed rate until 31/07/2024
Reversion rate: The bank’s standard variable rate, currently 4.99%.
The overall cost for comparison is 4.05% APRC representative.
Lender’s arrangement fee: £995
Mortgage term: 25-years
Repayment type: Full capital repayment
Loan-to-value: 85%
Early repayment charge: Until 31/07/2024
Overpayments: Up to 10% per annum without charge.
Representative example: A capital and interest mortgage of £650,000 payable over 25 years, initially on a 2.15% fixed rate until 31/07/2024 and then on a variable rate of 4.99% for the remaining 20 years, would require 62 monthly repayments of £2,455.33 followed by 298 monthly repayments of £3,319.89. The total amount repayable would be £1,142,375.18 made up of the loan amount, plus interest (£490,562.68) and £995 (product fee), £90 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4.05% 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 refinance properties for an onward residential purchase
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