Clients Remortgaging To Release Funds To Buy New Residential Property And Keep Existing Home

The clients: Our clients wanted to remortgage their existing property in order to release funds to enable them to purchase a new residential property. They wanted to keep both properties, and mortgages, running at the same time. We needed a lender who would incorporate vested stock bonus income into its affordability calculations, enabling the clients to borrow the amount required. Key requirements: –

• A lender prepared to agree to remortgage the clients’ existing property, as well as agreeing to lend the full £937,000 to enable the clients to buy their new home.
• A lender prepared to take vested stock bonus income into account when working out how much the clients can afford to borrow.
• A lender willing to add the arrangement fee to the loan.

After sourcing the mortgage market, we identified a lender who agreed to lend the full amount required on two mortgages at a competitive rate. The application process: To support the mortgage application, the clients provided details of their income, vested stock bonus income and evidence of their identity. We were delighted to inform them that a lender had issued formal offers for the full amount requested.

• Property purchase value: £1.875m
• Loan amount: £937,000
• LTV: 50%
• Rate: 4.09% (0.59% above base rate) for two years
• Lender product fee: £995 added to the loan
• Monthly payment: £5,808
• Property remortgage value: £750,000
• Loan amount: £405,000
• LTV: 54%
• Rate: 4.09% (0.59% above base rate) for two years
• Lender product fee: £995 added to the loan
• Monthly payment: £2,449