Are you looking for a specialist mortgage but have some complex holdbacks? Or you’re unsure on the best solution to help your current mortgage situation? We have the banking contacts on hand to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.
Case Study
Our clients were a married couple with no dependents. Their property, which they had designed and built themselves, had two mortgages on it. Both of which were coming to an end but the bank had decided that they were not willing to extend the mortgages. When the couple approached largemortgageloans.com’s team of expert advisers, they were facing the prospect of a forced sale of their home.
Firstly, our advisers spoke to the bank and agreed a three-month extension to their mortgages therefore averting the prospect of repossession and allowing much-needed time to put an alternative solution in place. The client was clear that their intention was to sell the property for a realistic value and had listed their home on the open market. Therefore, they needed a short-term funding solution to cover their mortgage until they found a buyer.
Complexities in the case came with the couple’s income stream. Although they had more than 30 years’ experience in property development, they had split away from their long-standing company and set up a new operation. This new commercial property development firm did not yet have a full set of accounts on which lenders would base their criteria and lending decisions. The couple had also missed a couple of credit card payments, purely through error, which was flagged as an issue for some lenders.
Solution
Having averted the risk of repossession, our expert advisers secured a 12-month bridging loan with one month’s notice. This meant that our clients could remain in their home whilst it was sold, rather than going through the trauma and upheaval of repossession plus the expense of having to move into rental accommodation in the interim.
Our solution gave the client time to sell their property for a realistic value and find a new home to downsize to in a nearby area.
| Loan amount: | £450,000 |
| Rate: | 7.80% |
| LTV: | 52.30% |
| APRC | Overall cost for comparison 10.70% APRC representative variable |
| Term | 12 months |
| Type: (Interest Only/Repayment) | Interest Only Bridging Loan |
| Loan purpose: | Remortgage so repossession does not occur with existing lender so that it gives time for the sale of their property |
| Lenders arrangement fee | 2% |
| Early repayment charge | 1 month |
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.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.
Overall cost for comparison 10.70% APRC representative variable based on 12 payments at a fixed rate of 7.80% and lenders fees. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.
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