Couple raise £10k for wedding and reduce mortgage payments by £200 pcm

The Clients: A recently engaged couple from Kent approached us looking to refinance their home for two reasons:

1. They wanted to reduce their monthly mortgage payments

2. They wanted to raise £10k to put towards their upcoming wedding

Both applicants are in full-time employment – one works locally within retail, the other is in a management role in the city. 

The Property: A 5-bed detached house in Swanscombe, valued at £650k. A perfect family home with excellent connections to the city.

The Finance: Sitting on an interest rate of 3.9% the couple wanted to refinance to take advantage of the lower rates on offer. They were particularly keen on locking in for five years.

The Application Process: After assessing the current options available, we decided to approach a high street building society. We helped the couple complete the application form and collate the supporting documentation which included:

• Proof of ID from both applicants
• Proof of address dated in the last two months
• One months’ payslips from both applicants to be submitted to the lender (MFB requests 3 months’ for compliance purposes)
• Three months’ personal bank statements

We submitted the application on a Friday afternoon and by the following Wednesday we had an offer. The couple were more than delighted with the offer presented to them – not only did they release £10k for their wedding, their mortgage payments were also set to reduce by over £200 per month!

Instead of instructing a standard valuation, this particular lender agreed to “drive-by” valuation. This type of valuation is based purely upon a surveyor’s confirmation of value and property location.

The case completed one month later. Here are the details of the deal:

Property Details

Property value: £650,000

Loan amount: £440,000

LTV: 68%

Rate: 2.09% 5 year fixed

APRC: 3.5%

Term: 35 years capital and interest

Lender arrangement fee: £999 added to loan amount

Mortgage payment: £1,478 pcm

Original mortgage payment: £1,688 pcm

Consultant mortgage adviser: Ashley Jones 01732 471694 or 07853829939

Are you looking to raise capital for your big day? or perhaps to fund property improvements? If so, give our residential team a call on 0345 345 6788.

22nd May 2018