Remortgage Onto a Cheap Five-Year Fixed Rate

Our clients were remortgaging their £500,000 property. They needed a £400,000 mortgage, including £100,000 for substantial home improvements. They also wanted to keep their monthly payments as low as possible and preferred a cheap five-year fixed-rate mortgage to help with budgeting.

Client One has complex income arrangements, with earnings from employed and self-employed positions, as well as maintenance payments. Client Two’s scenario is more straightforward, as he is employed.

Numerous lenders were sourced but this was a complex case as we needed a lender who would use all of Client One’s income and who would also be happy with the significant additional borrowing for home improvements.

Key requirements: – • A lender happy to agree to a £400,000 remortgage, including £100,000 for substantial home improvements. • A lender prepared to take a mix of employed and self-employed income and maintenance payments into account when calculating affordability. • A lender who would add the arrangement fee to the mortgage.

After sourcing the mortgage market, we identified a lender who would agree to lend the £400,000 required amount on a remortgage basis, with a significant sum included for home improvements.

The application process: To support the mortgage application, the clients provided details of their earnings and maintenance payments, where applicable, along with evidence of their identities. We were delighted to inform them that the lender had issued a formal mortgage offer for the full amount requested.

• Property value: £500,000 • Loan amount: £400,000 • LTV: 80% • Rate: 2.24% fixed for five years • Lender product fee: £999 added to the loan • Monthly payment: £1,800.04
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