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. The lender who would add the arrangement fee to the mortgage.
But, 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.
In other words, 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.
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