Amongst our clients are a pair of leading university professors. One of them recently moved to Oxford University.
Our clients wanted to buy a property in Oxford for £700,000 with a deposit of £50,000 and Oxford University offered to provide a second charge of £150,000 on a separate 3% loan. So they needed to borrow a further £500,000. A private bank that we know well has experience in Oxford of this exact scheme.
The bank met the clients, agreed the case and offered excellent terms and service. The negotiated rate is 1.5% over the bank’s own base rate, giving a 3% payment rate (APR %* - the overall cost for comparison). The £500,000 loan is split between capital & interest repayment and interest only, because the clients are happy to use their pension lump sum to reduce the loan accordingly. The bank has agreed that the 15 year term may continue after retirement due to strong teachers’ pensions being in place.
The clients paid a £2,500 arrangement fee.
*APR (the overall cost for comparison) calculation based on a 15 year term, interest only mortgage with £2,500 arrangement fee, legal and valuation fees of £. The actual rate available will depend on your circumstances. Ask for a personalised illustration.