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

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).

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576 Reviews
Cold called Michael 17:23 on a Tuesday evening who within 20 minutes had gleaned sufficient information to email a solution on Friday afternoon. All correspondence and phone calls were answered quickly and accurately. Mortgages were raised in plenty of time for exchange. Michael, Maniksha and all others involved made an excellent responsive team making a difficult situation so much easier.
Just brilliant. Simon and Chloe have taken care of everything, twice now. The first time was really difficult, and Simon put in a huge amount of work to make it happen. Second time around, Chloe has taken the lead and it has been seamless. Thank you!
Jason Hall has always been outstanding and faultless to work with. He's also a top guy that really makes me feel like I'm his only client. Thank you!
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