£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).

Private Finance Ltd is rated 4.94 stars by Reviews.co.uk based on 542 merchant reviews

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542 Reviews
I would highly recommend Private Finance Ltd. Alex Weldon in particular helped us secure our first mortgage. He answered all our queries in record timing (usually within 15-30mins!) and nothing was ever too much trouble. Alex was always on the other end of the phone if needed and he made the process as smooth as possible.
Ed and Donovan are brilliant at what they do. I have used them many times now and each time they have been able to find me a great deal and handle all the complexities of my case. I would always recommend them to anyone.
Great and professional team, especially Elizabeth O'Connor, who guided me through the purchase, which was successfully completed! Highly recommended.
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