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

MORE

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 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