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Case Profile
Our client was referred to us by their private bank with whom they held a £650,000 facility at 6% interest. The client had used the facility for redevelopment and refurbishment of a prime London property, which they also held a mortgage on for £630,000 with a high street Buy to Let lender. The client decided to sell the property and had put it on the market, but was not likely to get a quick sale and needed to reduce borrowing costs.
The fixed term on the current mortgage was drawing to an end and, due to the property being on the market, re-mortgaging the property was not an option. Therefore, the client was facing moving on to the lenders standard variable rate of 4.74%.
The client had no taxable UK income, as all income was derived from an overseas based investment bond worth millions, from which a monthly drawing was taken.
Solution
We were able to place the client with a private bank who offered a Lombard Loan facility at 1.25% over 3 month LIBOR. As the debt is serviced from the bond – the lack of UK income was not an issue.
This allowed our client to clear the private bank facility at 6% and the existing Buy to Let mortgage at 4.74%, providing a considerable saving. As the facility had no early repayment charge, this meant the property could be sold and the debt paid down without penalty.
Deal Highlights
| Loan amount: | £1.3million (43% loan to value of investment) |
| Rate: | 1.25% over 3 month LIBOR |
| Term: | Rolling facility |
| Type: | Interest only |
| Loan purpose: | pay off existing finance |
| Lender’s arrangement fee: | None |
| Early repayment charges: | None |
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
largemortgageloans.com is a trading name of largemortgageloans.com Limited, which is authorised and regulated by the Financial Conduct Authority. A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £1,000,000 the fee would be £11,700 in total. Of this, £2,340 (20%) would be payable on application and the balance of £9,360 (80%) on completion. The precise amount will depend on your circumstances.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
