Reduce your outgoings and save money

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 4.94 stars by Reviews.co.uk based on 542 merchant reviews

4.94 / 5 Rating
542 Reviews
I would highly recommend Private Finance Ltd. Alex Weldon in particular helped us secure our first mortgage. He answered all our queries in record timing (usually within 15-30mins!) and nothing was ever too much trouble. Alex was always on the other end of the phone if needed and he made the process as smooth as possible.
Ed and Donovan are brilliant at what they do. I have used them many times now and each time they have been able to find me a great deal and handle all the complexities of my case. I would always recommend them to anyone.
Great and professional team, especially Elizabeth O'Connor, who guided me through the purchase, which was successfully completed! Highly recommended.
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