Contractor with 6 months’ accounts remortgages home to repay debts

Contractor with 6 months’ accounts remortgages home to repay debts

19.07.17 | Written by: Charlie London

We were approached by an IT contractor looking to remortgage his home for two reasons:

  1. He was coming to the end of his initial term on his current mortgage
  2. He wanted to raise enough capital to repay a small debt and purchase a car

The property in question is a 4-bed detached house in Maidstone.

As the client had only been a contractor for six months he had been struggling to obtain finance. Most lenders like to see at least one years’ worth of self-employed accounts.

An added complication to this was that the client wanted a 25 year term, taking him into his 70s.

We approached one of the high street banks, with whom we have placed similar cases with in the past. The bank agreed to take a view on six months’ worth of accounts and produced an offer within just four working days.

Here are the details of the deal:

Property value: £300,000

Loan amount: £225,000

LTV: 75%

Rate: 2.04% 5 year fixed

Term: 25 years capital & interest only

Lender arrangement fee: £995

Mortgage payment: £962 pcm

Consultant: Charlie London, 01732 471604

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.