Location: Hertfordshire

Loan Amount: £2,000,000

Finance Category: Residential Mortgage

The Story

A client in Hertfordshire contacted Fox Davidson and asked us to find a market leading 5 years fixed rate mortgage with an offset facility and furthermore they required the £2m mortgage on an interest only basis or as much as possible on an interest only basis.

Offset mortgages are excellent for clients that have savings that may be offset against the mortgage. The savings balance offsets against the mortgage balance and interest is paid on the net balance only. These schemes are particularly useful for the self-employed who will save money each year to pay their tax bill.

The Challenge

The challenge in this case was twofold; the client required a fixed rate offset mortgage and most lenders only offer offset mortgages on a base rate tracker basis. The other challenge was securing interest only lending using only the sale of the property as the method of repaying the loan.

The Solution

We were able to secure a £2 million pound interest only mortgage at a fixed rate at 2.07%. The mortgage was agreed with £1.8 million on an interest only basis and £200,000 on a capital repayment basis. The rate was fixed for 5 years at a competitive rate and would work out cost effective for the clients compared to the rate of intertest they were previously achieving on their savings with their bank.

We set the loan up so that any savings offset against the mortgage would reduce the monthly payment. The loan facility also has the option to pay back lump sums off of the capital if required.

Fox Davidson

We specialise in £2 million pound mortgages (plus) including offset mortgages and interest only facilities. Contact us on 0117 989 7950 or email enquiry@foxdavidson.co.uk

Sarah Fox-Clinch

Director & Property Finance Consultant

About: Sarah has been in the mortgage industry for over 20 years and has amassed considerable experience in complex lending situations. Her passion is assisting clients with high value transactions, property with acreage and lending based on complex income. Sarah’s work ethos is to focus on each individual and give the time and support needed to help them move forward with their lives.

Favourite Film: Alien or Blade Runner

Quote: “Wanting to be someone else is a waste of who you are” – Kurt Cobain