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Emma Knapp

Residential remortgage to consolidate debt

05.06.18 | Written by: Pete Coombes

The Client: An insurance broker from Hemel Hempstead looking to remortgage his home. He planned to use the capital raised from the refinance to consolidate his debt - consisting of his current mortgage and credit cards.

The Property: The property in question is a 5-bed detached house in a sought after cul-de-sac. The client had been living in the house with his young family since 2008 and has £394,000 remaining on the mortgage.

The Finance: The client was looking to borrow £450,000 in total.

His only request was that we secure a five-year fixed rate which would offer him a period of stability.. Unsure on what repayment term would work best for him, we agreed to provide the client with three options – an interest only mortgage, a capital and repayment mortgage and a part and part mortgage.

The Application Process: We took the case to a high street bank which is currently offering competitive five-year fixed rates. We submitted the application on a Thursday afternoon and just under two weeks later an offer was made.

Even though the client would be increasing his outstanding mortgage balance by £56,000, his monthly mortgage payments only increased by £150 per month.

Here are the details of the deal:


Property value: £800,000

Loan amount:
£450,000

LTV:
56%

Rate:
1.85% 5 year fixed rate

APRC:
3.1%

Term:
22 years

Lender arrangement fee:
£1,214 added to loan amount

Mortgage payment:
£2,080 pcm

Original mortgage payment:
£1,930 pcm

Consultant: Pete Coombes01732 471 688

 

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

Get in contact with us: 0345 345 6788 or ...

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