The Client: A father and daughter approached us looking to refinance their home. The father is a self-employed editor, he is also in receipt of a pension. The daughter works as a journalist in the city.
Having originally taken out an interest only mortgage, the pair were now looking to refinance onto capital and repayment terms.
The Property: A four-bed semi-detached house in North West London.
The Finance: Moving from an interest only mortgage to capital and repayment, both father and daughter were aware that their monthly mortgage payments would increase.
Keen to keep their payments locked in at a fixed amount, the pair had requested a three-year fixed rate. They planned to reassess their options at the end of this term.
The Application Process: To achieve the desired loan amount, it was apparent that we would need to approach a lender which would accept pension income when calculating affordability. Added to this, the lender would need to accept applicants up to the age of 80 at the end of the loan term.
Within one hour of receiving the application we made a call to one of the high street building societies. After talking the case through, they advised us that it was a good fit with their lending criteria.
We submitted the full application to the lender at 1:15pm – an automated valuation was carried out immediately (free of charge). An offer was then presented to us at 11:40am the following day.
Needless to say, the clients were delighted with the outcome! Here are the details of the deal:
Property value: £580,000
Loan amount: £232,054
Rate: 1.78% 3 year fixed rate
Term: 13 years
Lender arrangement fee: £999 added to loan amount
Mortgage payment: £1,664 pcm
Original mortgage payment: £304.80
12th July 2018