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Proposition

Our clients moved into their property in late 2008, taking out a £336,000 mortgage secured against a property value of £465,000. They have significantly renovated the property since then, building a large kitchen extension. These works were funded using loans and credit cards to a total cost of £130,000.

The clients attempted to remortgage several times, both going direct to their lender and using another mortgage broker but were declined due to their credit score. They have no missed payments but their debt to income ratio was the issue, even though they used the debt to improve the property rather than for personal spending. They have a joint income of just over £100,000.

Solution

We were able to arrange a £446,000 mortgage for the couple against the enhanced property value of £625,000, enabling them to raise capital to consolidate their debts. The remainder of the unsecured borrowing was cleared using the proceeds of the sale of shares. The clients opted for a discounted variable rate of 2.99% (APR 3.1%* - the overall cost for comparison) with an offset facility and no early repayment charges.

The clients have much improved cash flow and making considerable savings as the unsecured credit card loans were at much higher interest rates than the secured loan that has replaced them. They are also paying a lower mortgage rate than before, so are saving there too.

Fees

The client paid an arrangement fee of £2,230 (0.5% of the £446,000 loan amount).

 

*APR (the overall cost for comparison) calculation based on a 20 year term, interest only mortgage with £2,230 arrangement fee, legal and valuation fees of £1,000. 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, 2020. 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 822 merchant reviews

4.95 / 5 Rating
822 Reviews
I found Private Finance to be a fantastic helpful, knowledgeable, patient, service. I really can't recommend you highly enough. Thank you for the superb help which is why we always come back to you.
Efficient and friendly service. Made being abroad and switching to a non-resident mortgage straightforward. Thanks Tim Nye!
Mike Perrin and private finance were recommended by a friend. From the moment I reached out to Mike, I received a very professional and personal service. Mike was able to digest my individual circumstances and find the right product for me and offer his expertise along the way. Being able to complete the majority of the paper work online was also highly convenient. Once the product was selected, the support between application to completion remained, with both Mike and Dan offering their support throughout the process, answering any queries and concerns in a timely manner. Thanks for all the help and look forward to working with you again in the future. Osman
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