advice with a large remortgage

Tim_UK_3

a friend has asked for advice on the following:

property value £1.5M

loan required £700,000 - 20 years interest only

self employed, net income about £160,000 per year

any views as to the rate and likely set-up fees ?


many thanks.

HelpWhereIcan

Will depend on a number of things.

I take it accounts are available to prove his/her income - how many years?

Does he/she just have more than one source of income making up the total £160,000? - Will only affect certain lenders.

I would expect he/she to be able to get a long term rate in the mid to late 5s and keep arrangement fees below a grand.

Depends on what type of deal they are looking for (fixed/variable, how long for, will they accept ties) and their individual circumstances (some lenders are better than others with their approach to underwriting larger mortgages).

A few of my higher net worth customers like HSBC for the long term value of their deals, Bank of Scotland can offer pretty reasonable underwriting (but deals are off a bit at the mo).

Deals are pretty much the same as the rest of us, but the difference tends to be the underwriting approach. Most lenders have large loan units where applications are dealt with and some are better and more flexible than others.

Depending on their 'attitude to risk' and (to and extent) financial 'sophistication', your friend may want to consider a multi currency mortgage which has the potential for much lower interest rates and much quicker capital repayment than is available to the rest of us (albeit with a fair bit more risk).