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 506 merchant reviews

4.94 / 5 Rating
506 Reviews
Very good personal service with good rate secured. I would not hesitate to recommend using this company.
Private Finance has been one of the best overall experiences I have ever had from a client perspective in any sector. Jason is professional, courteous, knowledgeable, prompt and very astute, going long beyond the call of duty. Every time his services are required the entire process goes by effortlessly upon my part, I have complete trust and confidence in him. I cannot recommend him or Private Finance highly enough.
We've been clients of Private Finance for five years and cannot rate their mortgage service highly enough. Adept at finding finance at the best rates for multiple properties. They simplfy the process considerably for us, ensuring hassle-free remortgaging. We do not go turn to anyone else now knowing that we can trust them to find us the best deal.
The British Mortgage Awards 2015 back to top