£450,000 mortgage with £412,000 interest-only and £38,000 repayment on £850,000 property value
1.35% Interest Rate
Retained sole property and provided mortgage-free home for wife and daughter after divorce
Our client, a contractor in the IT industry, was going through a divorce. As part of these arrangements he planned to retain the current property in his sole name and provide a separate mortgage-free home for his wife and daughter.
What was needed
The client wanted to keep hold of the current property rather than be compelled to sell it because of the divorce. So, he needed to be able to remortgage the current property to pay off the existing Barclays mortgage and transfer ownership to his sole name. However, he also needed to make sure he released enough funds to be able to purchase another property mortgage-free for his ex-wife and daughter to move to.
What was the challenge
Our client needed to borrow £450,000 to fulfil his plans. While our client has a strong income as an IT contractor, many lenders put restrictions on borrowing with this type of income, corresponding to their mortgage affordability criteria. In addition, the client was seeking an interest-only mortgage and was already 53 years old.
How we provided the solution
Mike Brooker, Associate Director, discussed the mortgage goals with his client, ascertained what was needed, and determined which lenders to talk to.
Mike concluded an appropriate mortgage deal for the client with Halifax on a 2-year fixed rate of 1.35% with £412,000 of the borrowing on an interest-only basis and £38,000 on repayment.
The client was delighted with the outcome. He was able to borrow the £450,000 he needed, structured in the way he wanted it, to secure the current property in his sole name and provide a mortgage-free home for his ex-wife and daughter for the future.
What was the rate
1.35% – 2-year fixed rate