Case Study – 85% LTV

Client’s requirements: –

Our client had been renting his office for a number of years and wanted to purchase some brand new premises to move in to, for £275,000 plus VAT. A deposit of 15% was available. He had spoken to his own bank, who (in line with most lenders) stated that the maximum loan to value (LTV) would be 70%.

Complete Mortgages’ solution: –

Our company director, who is an expert in self-occupied commercial mortgages, negotiated an 85% loan to value mortgage with one of our panel of providers. This was due to the fact that the business was performing strongly and its profits had increased substanitally in the past few years. Not only was he able to agree extremely favourable terms with the lender, but the client also benefitted from a 2% cashback as part of the Government’s National Loan Guarantee Scheme.

Finance agreed: –

  • Loan of £233,750
  • 15 year term (the client could have taken 20 years but chose not to)
  • Lender’s arrangement fee of 1.25%
  • Rate of BOE + 3.50%
  • Early repayment charge of 1.00% unless 7 days’ notice given (in which case there are no charges)