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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, 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 726 merchant reviews

4.95 / 5 Rating
726 Reviews
Chris was polite and very efficient...…. replied very quickly to emails and sourced a mortgage that I would never have been able to get without Private Finance Ltd. Thank you so much!
Since finding this company I've come back every time I have to remortgage - they make the process hassle free and find really good deals every time. Can't recommend enough.
Amazing service from Michael Mears I will certainly use Private Finance again and highly recommend them as a company.
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