Portfolio landlord remortgages home to save £671 per month

Portfolio landlord remortgages home to save £671 per month

15.08.17 | Written by: Beckie Pepperrell

The director of a IT solutions company approached us looking for help to reduce the monthly mortgage payments on his home. Currently paying £2,200 per month (on his lender’s standard variable rate), he was hoping to secure remortgage onto a more competitive rate.

As well as running his IT business, the client is also a landlord with a portfolio of  20+ properties.

Many residential lenders will not lend to landlords with large portfolios, even if they also have a “day job” and aren’t reliant on the rent for income. So, we approached a high street bank, which we know, does not make this stipulation and is happy to include both the rent and the business income when calculating affordability.

The bank offered the client a rate which would reduce his monthly payments by a massive £671. Here are the details of the deal:

Property value: £850,000

Loan amount: £468,829

LTV: 55%

Rate: 1.89% 5 year fixed

Term: 35 years capital and interest

Lender arrangement fee: £999

Mortgage payment: £1,529 pcm

Original mortgage payment: £2,200 pcm

Consultant: Beckie Pepperrell, 01732 471602

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