£1.9 million purchase – need to borrow 100% - must exchange in 3 weeks

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Proposition

Our client wished to purchase a country property for £1.9 million and needed to exchange in 3 weeks to secure the deal. He wanted to borrow 100% of the purchase price, plus costs, so around £2 million in total. His income was £750,000, with a base salary of £150,000, the rest being bonus. The client had a house in London, with no mortgage on it, valued at £1.2 million, which he did not wish to sell.

Client profile

Aged 39, married with 3 children, his plan was to live in London during the week and in the country at weekends. He had a £1 million investment portfolio of shares and other assets and wished to pay the mortgage off quickly with bonuses and investment returns.

Solution & Fees

After considering his options, we arranged an interest only remortgage for 3 years on our client’s current property for £720,000 – 60% of its value. We negotiated a rate of 1.69% over Bank of England Bank Rate, giving a payment rate of 2.19% (APR1 2.6%* - the overall cost for comparison). There were no Early Repayment Charges, and the remortgage costs were paid by the lender. The client paid a £1,499 arrangement fee on this mortgage.

To make up the total of £2 million that our client wished to borrow, we also arranged an interest only mortgage for 3 years on the new property; £1.28 million at nearly 70% of the £1.9 million purchase price. The rate was 2.09% over Bank of England Bank Rate giving a payment rate of 2.59% (APR2 3.4%** - the overall cost for comparison). Again, there were no Early Repayment Charges. The client paid a 0.3% arrangement fee (£3,840) on this mortgage.

 

*APR1 (the overall cost for comparison) calculation based on a 3 year term, interest only mortgage with £1,499 arrangement fee, legal and valuation fees of £3,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

**APR2 (the overall cost for comparison) calculation based on a 3 year term, interest only mortgage with £3,840 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 731 merchant reviews

4.95 / 5 Rating
731 Reviews
I didn't expect Conor at Private Finance to be able to find a mortgage solution for my circumstances. I was wrong. I now have a mortgage exactly suited to my needs. Suffice to say I am very pleased with the service provided by Private Finance and Conor in particular. I would have no hesitation in recommending their services to others.
Fantastic service, Simon sorted me out with exactly what I wanted and at a better interest rate than I could get else where. Would recommend their service to anyone. Hopefully I get the chance to use this company again. Thank you
The service from Donovan was excellent. As we came into this as first time buyers, Donovan put us at ease at all times, was very responsive and and provided ample advice. He was a calming influence on the whole house buying process. The service was silky smooth from start to finish! I would not hesitate to recommend Donovan and Private Finance.
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