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

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 4.94 stars by Reviews.co.uk based on 576 merchant reviews

4.94 / 5 Rating
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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