Landlord saves £187 pcm with buy to let product transfer

Landlord saves £187 pcm with buy to let product transfer

04.04.17 | Written by: Erin Gallacher

We were approached by a full-time landlord looking to remortgage a five-bed terraced house in Birmingham that is let to housing association tenants. The initial mortgage term with BM Solutions was coming to an end which meant that they would revert onto the lender’s standard variable rate (SVR) – currently at 4.59%.

The client wanted to reduce his monthly mortgage payment and had considered remortgaging with a different lender but many do not allow housing associations.

BM Solutions provides a speedy product transfer facility through Mortgages for Business and other registered intermediaries. This meant – no underwriting, no arrangement fee, no legal fee and no valuation fee for the client when switching to another product with BM Solutions on a like for like basis.

Transferring to the new product at a lower interest rate and a longer repayment term meant that the client would save nearly £200 a month in mortgage payments and so happily agreed to the terms offered. The client signed and returned a simple declaration form which we immediately sent on to BM Solutions. The entire product transfer was completed within 24 hours.

Here are the details:

Property value: £148,600

Loan amount: £88,194

LTV: 59%

Rate: 4.19% 5 year fixed

Term: 21 years’ capital & interest

Borrower: Individual

Mortgage payment: £525 pcm

Original mortgage payment: £712 pcm

Lender arrangement fee: Nil

Rental income: £860 pcm

Gross yield: 6.9% pa

Consultant: Erin Gallacher, 01625 416 392

 

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.