£14,025 remortgage saving with 75% LTV on £1.275m property

1.39% interest rate on high value interest-only remortgage

Complex combination of employed and self-employed income

Our client

Our existing clients had an expiring mortgage deal with Clydesdale Bank for an outstanding mortgage value of £1.275m. Their property value was £1.7m so the loan to value was 75%, plus the mortgage was on a full interest only basis.

What was needed?

The client wanted to remortgage on the same basis, or better terms, at a time when lenders are tightening their criteria.

What was the challenge?

The challenge was that there were few options for a full interest only mortgage at the 75% loan to value level at this loan amount.

The other complication was that the client was a medical professional who was employed, but who also received self-employed income via a limited company but did not draw any income directly from that limited company.

It initially appeared that the only real option would be to take a product transfer deal with Clydesdale at 1.94% interest rate with a £999 fee.

How we provided the solution

Using his extensive contacts, and knowledge of the mortgage market, Nick Plappert, Executive Director, managed to convince a High Street Bank, who does not normally accept undrawn net profit as evidence of income, to agree to recognise this for mortgage purposes as an exception.

The result was that Nick obtained for the client an interest rate of 1.39% fixed for two years with a £999 fee, saving the clients £14,025 over two years. The client was thrilled!

Nick was delighted that during the middle of a pandemic, where many of the banks are taking a more pessimistic view on self-employed clients, he was able to meet the clients’ remortgage goals and deliver them a substantial saving.

What was the rate?

The rate was 1.39%