THE MILLION POUND MORTGAGE... FOR UNDER ￡1,400 A MONTH
I really enjoyed this one as it was for some great clients and we managed to exceed expectations which is always a bonus!
My clients were a medical professional and her husband who is a graphic designer. The area they live in has always been eye-wateringly expensive - and with a growing family they were not sure they could afford or stretch to a mortgage of the size they needed to escape their two bedroom flat and buy the house with the space they desperately needed - especially not in the neighbourhood they called home.
THE SCENARIO
The clients were keen to keep costs down and did not think they would be able to either borrow enough or keep costs to a manageable level. This isn't unusual with clients but you could be surprised by how much you can borrow and just how cheap it can be.
Two key factors where at play here in keeping the costs down.
1) The loan to value was just over 70% meaning lower risk for the bank and therefore some attractive rates - especially given the amount being borrowed
2) Having an interest only mortgage kept the cost per month very low
THE MORTGAGE
Not only were the clients able to borrow the amount they wanted - they managed to secure their dream home (in the area they wanted!) and we were able to get an incredible deal on the mortgage.
The clients income and the loan to value required enabled them to qualify for an interest only mortgage. The rate was an incredible 1.63% and payments came in at ￡1,358 per month (well below their ￡1,500 ideal budget)
Interest only can be controversial - but it comes down to individual circumstances as to whether it is a good idea or not. For these clients a family trust that pays out in 14 years time will pay a large chunk off of this mortgage....and the future plans to relocate back to Wales and a smaller property once they retire mean that interest only was a sound strategy for them.
LOOKING AT YOUR MORTGAGE?
Mortgages should work for you...not against you, and often the old traditional way of approaching mortgages isn't only out-dated it is not suited to the modern professional. If you want a fresh approach, some alternative thinking and are looking at moving, re-mortgaging, or raising equity then please feel free to get in touch if you would like to explore what your options are.
07740 284270