Case Study Updates

Another deal placed by Money
Welcome to our case study update. This case demonstrates how a £2.8 million interest only mortgage with no early repayment charges, to raise capital for refurbishments. To discuss this or any other large mortgage case, please contact us.

Case profile
A client needed a £2.8 million remortgage on a property worth £4 million (70% LTV).  He was increasing his borrowing from £2.5 million to raise £300,000, as refurbishment costs had overrun. The property had been purchased using a semi commercial loan a year ago. The client earned a basic salary of £230,000, plus a bonus of £210,000 for 2010, giving a total of £440,000 income. This meant that he was looking for a mortgage with an income multiple of more than 6 times, something that he could not find in the high street or by using the internet. He was referred to, the large loan specialists.

The solution
When our mortgage experts looked into the case, they discovered that the client is a partner of a Venture Capital Fund, with a 20% share. The company is being sold in 2011, meaning that the client will receive £2 million from the proceeds of the sale later this year and will be able to pay off a substantial proportion of the £2.8 million loan. Using our extensive network of international private banks, our brokers were able to place the deal at a competitive rate and with no early repayment charges, meaning that the client can pay down the loan without incurring any further costs.

Deal highlights
Loan amount: £2.8 million
Rate: BoE Bank Rate plus 3%¹ (current rate 3.5%)
APR: 4.0%² (the overall cost for comparison)
Term: 5 years
Type: Interest only
Arrangement fee: 1%
Early repayment charges: None

Contact the experts
This case study shows that it is more important than ever to use the services of a specialist large mortgage loan broker who has access to the wide range of lenders willing to finance high value UK property, someone who searches the entire market to find the mortgage that suites your personal requirements.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Note that the case study is only for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.

¹ Please note that this deal may not be available to - or suitable for - all customers, dependent upon their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This letter may not contain all the information needed for customers to make a decision and they should seek advice.

² APR calculation based on arrangement fees of £28,000 and legal and valuation fees of £5,000. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.

Money is a trading name of Malik Charles & Co UK Ltd, 268 Bath Road, Slough
Your initial consultation is obligation free. A fee as described below will be charged on application for a mortgage, this fee is non-refundable. We will also be paid by the lender. On mortgages up to £500,000 the fee would be £495. On mortgages over £500,000 up to £1,000,000 the fee would be £995. For mortgages over £1,000,000 and exclusive or semi exclusive schemes the fee would be up to 1% of the loan amount. e.g. on a mortgage of £2,000,000 the fee would be up to £20,00