Residential remortgage to consolidate debt

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.

Property Details

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 mortgage adviser: Ashley Jones, 01732 471694 or 07853829939

 

5th June 2018