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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.

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

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