We have been approached by a married couple who were looking to buy a bigger residence. particularly, they wanted us to discover if their current Manchester lender (http://mortgagebroker.posthaven.com/wigan-and-bury-mortgage-brokers-manchester-and-lancashire) might permit them to:
switch their existing, interest only, time period tracker mortgage onto the new assets (referred to as porting)
expand the mortgage time period which had simply eight years left to run
Borrow an additional £279,250 – nearly double their present top notch mortgage
The couple have been into the bank themselves and requested those questions but have been given a firm no however the husband, being a mortgage dealer himself, knew it is probably possible with the help of an middleman – so were given in touch with us!
to feature another layer complexity, the husband’s profits includes fluctuating quantities of commission.
We approached the customers’ current lender to negotiate terms. After sizable to-ing and fro-ing we had been able to get the financial institution to conform to:
Port the present loan price over to the new assets: bank rate + 0.59%, i.e. zero.eighty four% – a simply outstanding fee compared to modern trackers, which might be all at the least 2% over base
expand the loan term from 8 to 22 years
Lend the extra £279,250 on a ten-12 months fixed charge.
The bank additionally agreed to provide as much as 50% of the property’s price on hobby-best terms, ensuring low month-to-month bills, with the remainder of the loan on a compensation basis.
The customers intended to promote the belongings on the quit of the term and downsize, letting them pay off the remainder of the loan and buy a smaller assets for coins.
despite the in-depth negotiation the Manchester lender issued a proper offer inside a couple of weeks of us submitting the software.
here are the details:
property value: £759,000
mortgage quantity: £569,250
LTV: seventy five%
rate: Ported: financial institution charge + 0.59% mortgage term tracker plus top up loan on 10 yr fixed at 2.89%
term: 22 years, part and component, i.e. £190,749 repayment and £378,501 hobby best
loan charge: £1,376 pcm
Lender association charge: £999 for pinnacle up loan. Port facility freed from charge.