£1.6 million offset mortgage on £2.7 million property at 2.5%

MORE

Proposition

Our client, a partner of a well-established law firm, was looking to buy a property in Fulham for £2.7 million. His existing home was worth £1.7 million and he did not wish to sell it. The property in mind needed £900,000 spending on it to realise its full potential.

Solution

We were able to attract the services of a private bank which undercut the market and offered an offset facility. Two loans were negotiated as follows:

Lending facility on the new property

A £1.6 million offset mortgage, based on a £2.7 million valuation, was negotiated at Bank of England Bank Rate plus 2%, giving a payment rate of 2.5% (APR1 2.7 %* - the overall cost for comparison). There were no early repayment charges. The client paid a 0.25% (£4,000) arrangement fee for this loan.

Lending facility on the existing property

A £1.55 million mortgage, based on a £1.7 million valuation, was also negotiated at Bank of England Bank Rate plus 2%, giving a payment rate of 2.5% % (APR2 2.8%** - the overall cost for comparison). Again, there were no early repayment charges. The client paid a 0.5% (£7,750) arrangement fee for this loan.

 

 *APR1 (the overall cost for comparison) calculation based on a 5 year term, interest only mortgage with £4,000 arrangement fee, legal and valuation fees of £5,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

**APR2 (the overall cost for comparison) calculation based on a 5 year term, interest only mortgage with £7,750 arrangement fee, legal and valuation fees of £5,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

© Private Finance Limited, 2019. Private Finance provides independent mortgage advice and arranges individual mortgage solutions for clients. Private Finance is a trading style of Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG, registered in England no. 3855776 and its Appointed Representatives. Private Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA registration number 310566).

Private Finance Ltd is rated 4.95 stars by Reviews.co.uk based on 616 merchant reviews

4.95 / 5 Rating
616 Reviews
I always feel in safe hands when seeking advice from Julian. He always seem to find the right product for my circumstances, particularly when the information I have doesn't seem to fit into all the relevant boxes.
The team is excellent. Tim has an unerring ability to come up with deals that can't be found anywhere else and his team, including Maniksha, is superb at tying up all the loose ends and driving the deal to completion. And they got me some money back!
Chris Sykes was great at getting lending sorted. And dealing with surveyors and getting a retention lifted before completion. Wouldn’t hesitate to recommend.
The British Mortgage Awards 2015 back to top