Let to Buy - £615,000 loan to buy a country cottage without selling a London property

MORE

Proposition

Our clients had been looking to move from London to the country for some time. They found their ‘perfect country cottage’, on the market at £500,000 but unfortunately there was another buyer who made a cash offer at just under the asking price. The clients’ London property was valued at £550,000 with a £100,000 mortgage, but was not yet on the market.

Solution

We met the clients and they were delighted to hear that finance could be arranged quickly which would allow them to move forward with an offer. We needed to secure a total loan of £615,000 to cover the new mortgage, the existing mortgage and stamp duty.

The maximum which could be arranged on a residential mortgage was £235,000, using a flexible product which would allow the clients to reduce the mortgage without charge when the London property was sold. The rate obtained was a lifetime tracker rate of 3.19% plus Bank of England Bank Rate (currently 0.5%) giving a payment rate of 3.69%. (APR 3.8%* - the overall cost for comparison). The mortgage was for a 15 year term on an interest only basis and the clients paid a lender’s arrangement fee of £1,499. Early repayment charges apply only on full redemption of the mortgage, not partial repayment.

The rental value of the London property was £1,900pcm, which secured a Buy to Let (BTL) mortgage of £380,000 with a specialist lender. The rate obtained was a 1 year tracker rate of 4.04% plus Bank of England Bank Rate (currently 0.5%) giving a payment rate of 4.54%. (APR 5.3%* - the overall cost for comparison).The mortgage was for a 10 year term on an interest only basis and the clients paid a lender’s arrangement fee of £11,400 (3% of £380,000). Early repayment charges of 3% of the loan amount apply for 1 year.

*The Residential Mortgage APR (the overall cost for comparison) calculation based on a 15 year term, interest only mortgage with £1,499 lender’s arrangement fee, legal and valuation fees of £1,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

*The BTL Mortgage APR (the overall cost for comparison) calculation based on a 10 year term, interest only mortgage with £11,400 lender’s arrangement fee, legal and valuation fees of £3,000. 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.
The British Mortgage Awards 2015 back to top