The client: A self-employed accountant and father of three who has recently completed a 3-year home renovation project to make it more suitable for his growing family.
The property: A 4-bed detached Victorian house in Kent on the outskirts of a popular commuter village which the client purchased in 2016.
The finance: With the fixed period about to finish on his current mortgage, the client was keen to remortgage onto a better rate and raise an extra £16k to pay off his credit cards which he had used to pay for the home renovations.
In particular, he was keen to secure a 5-year fixed rate which would ensure that his monthly mortgage payments stay the same for the next five years.
The solution: Having searched the market and made some calculations, we suggested a product that is less costly than his current mortgage and lets the borrower add the lender arrangement fee to the loan rather than paying it upfront.
The lender also allows capital raising for debt consolidation purposes and, unlike many other mortgage providers, permits borrowing on part repayment and part interest-only terms. This meant that the client would be able to reduce his monthly mortgage payments even though he is borrowing more money.
The application process: Firstly, we submitted some basic details to the lender in order to get an immediate Agreement in Principle. To accompany the full mortgage application, the client supplied two years' tax returns as well as proof of identity and address, and recent bank statements. We then worked hard to ensure that application was processed as quickly and as smoothly as possible.
Details of the deal can be found below. If you'd like to find out if you could remortgage your home to save money and consolidate debts, do get in touch. All initial advice is free of charge and without obligation. And I'm always happy to help!
Property value: £800,000
Loan amount: £542,622
Rate: 1.94% 5 year fixed
Term: 23 years, part interest only part repayment
Lender arrangement fee: £995 added to the loan
Mortgage payment: £1,096 pcm
Mortgage adviser: Ashley Jones, CeMAP
Call: 01732 471694 or 07853829939
You may also like to read:
19th February 2019