Refinance of 5-bed for cash purchase of temporary second home

A married couple – both in full-time employment contacted us looking to refinance their 5-bed home in Glasgow.

They planned to use the capital raised from this transaction to buy a new home outright just 30 minutes away.

Their plan is to live in the new property for a year or two to ensure their child gets a place at a well sought after local school. Once their son is accepted by the school they plan to move back to their original home and rent out the other property.

The client was keen to get a low rate, however many lenders did not like the fact the couple would be running two homes when it came to their affordability calculations.

Fortunately we found a high street bank who could assist.

They even offered a free valuation and legals to help keep costs down.

Here are the details of the deal:

Property value: £220,000

Loan amount: £162,000

LTV: 74%

Rate: 2 year fixed 1.69%

Term: 19 years capital & interest

Mortgage payment: £854pcm

Lender arrangement fee: £995

Consultant: Beckie Pepperrell, 01732 471602