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Capital raise remortgage for couple with bonus based income

06.08.19 | Written by: Ashley Jones

The Clients: A young employed couple looking to remortgage their property for the first time, following the expiry of their initial 2 year fixed rate product.

The Property: A 3 bedroom Victorian property, in a popular commuter town in Kent. The property benefits from being close to a train station and fantastic local amenities.

The Finance: The couple asked for our assistance as they wanted to remortgage and borrow additional funds, to allow them to carry out refurbishments. Their existing mortgage lender had only offered them extra funds on higher rate product. The couple were keen to have a look at a variety of different lenders to get a highly competitive rate on the total amount borrowed.

The Challenge: We knew that this was going to be a difficult case due to one of the applicant's complicated income stream, which was partly based on bonuses and incentives.

The Solution: In this case we needed a lender who would consider the bonus nature of the applicant's income as part of their affordability calculation. Before submitting any applications, we spoke to several lenders that would be interested in lending to the couple, to find the best rate for them. After finding one that matched all the requirements, we made sure to get a final confirmation that the lender was happy to proceed before submitting a formal application. Once the lender received all the documentation, the valuation report was instructed on the same day and the offer was issued within seven working days.

Property value: £240,000

Loan amount: £194,000

LTV: 81%

Rate: 2.04% (5 year fixed rate product)

Term: 28 years

Mortgage payment: £762

Lender arrangement fee: £999

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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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