Unusual properties can capture the imagination and provide incredible homes, but it doesn’t always mean they are easy to finance. If your property is listed, thatched or of a non-standard construction such as a timber frame, concrete or even predominantly made of glass, you are likely to need a specialist lender.
Case profile
Our client approached largemortgageloans.com looking to finance a Grade 2, listed property. Added to the complexity of the property itself was the client’s financial situation. Recently divorced, they had limited capital to use as a deposit. They drew income from a number of companies, however only enough to meet their living expenses, which would not have satisfied most lenders in the context of the size of the loan.
This situation meant that the majority of the loan needed to be interest only. Additionally, the client outlined a desire to retire in the next decade, meaning it would need to be agreed on a short-term basis.
Solution
Our Associate Director Nigel Bedford used his specialist knowledge of retail lenders to select a small number of banks which would consider such a tricky case. He presented a detailed, compelling credit proposal to these banks, demonstrating the track record of undrawn profits from our client’s various business interests. This information was enough to satisfy a lender and all of our client’s requirements were met with a bespoke and tailored lending solution.
| Loan amount: | £1,060,000 |
| Rate: | 2.04% fixed for 2 Years |
| Loan To Value: | 80% |
| APRC: | Overall cost for comparison 4.40% APRC representative variable |
| Term: | 7 Years |
| Type: | Interest only & Repayment |
| Loan purpose: | Purchase |
| Lenders arrangement fee: | 0.2% of loan amount |
| Early repayment charge: | 3% of the outstanding loan amount in Year 1, 2% in Year 2 |
Overall cost for comparison 4.40% APRC representative variable based on 25 monthly payments at a fixed rate of 2.04% followed by 59 monthly payments at the lenders variable rate, currently 5.20%. Total amount to be repaid £1,373,670.94. As the mortgage rate is not fixed for the duration of the loan this amount is illustrative and may be vary in particular as a result of variations in interest rate.
Because part of your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to 11.95%, the APRC could increase to 12.80%. The actual rate available will depend upon individual circumstances and may not be available to everyone. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
