It seems after more than two years of Bank Rate being at the record low of 0.5pc, lenders are finally passing on savings to customers.
Yorkshire Building Society has launched two new fixed rate mortgages – which both top the best buy tables. The five year fixed rate loan is the lowest ever for the time period charging just 3.49pc, with an arrangement fee of £995.
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Mortgage rates have fallen to the lowest level since records began 16 year ago, suggesting that Bank of England’s policy of slashing interest rates is finally benefiting some home owners click here to read more
Another deal placed by the specialists in large mortgage loans
We have just arranged a ‘near prime’ £1.6m mortgage at Bank of England bank rate plus 3.25%¹ – a pay rate of just 3.75% (APR 4.3%²) – for a young entrepreneur with plenty of equity but a slightly blemished credit record.
To discuss this or any other large mortgage case, please contact us.
Case profile
Our 28 year-old client has run his business as a sole trader for 8 years, before converting it into a limited company last year. His earnings are around £400,000 per annum. He wanted to buy a New Build property for £2.68 million, borrowing £1.608 million (4 times his annual income) at a loan to value (LTV) ratio of 60%. However, in 2007 he had a dispute with a hotel over a bill, which resulted in a County Court Judgement (CCJ). Although the client satisfied the CCJ in November 2007, it still shows up on a credit check in 2011.
Two mortgage brokers who tried to place his case with high street banks managed to get a total of 6 separate agreements in principle, only to have the banks’ underwriters turn the case down on every occasion because of the CCJ. The 6 credit checks involved in these applications further damaged his credit rating. Read the rest of this entry »
We have just arranged a 90% LTV £2.1m mortgage at 3 month Libor plus 2.75%¹ – a pay rate of just 3.59% (APR 4.1%²) – for a Premiership footballer. To discuss this or any other large mortgage case, please contact us.
Case profile
A young Premiership footballer moved club from the North of England to London, renting a property to start with as he built up a deposit and looked for somewhere suitable to buy. He found a house on the market at £2,825,000 and the vendor offered to take £500,000 off the purchase price if he could complete the deal within a set deadline. This brought the price down to £2,325,000 but, not having had time to build up a significant deposit, our client needed to borrow 90% (£2,092,500). Such a deal is not available on the high street. Read the rest of this entry »
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July 2011 Market Commentary
July 7th, 2011Posted in Commentary | No Comments »