We were approached by a self-employed builder and part-time landlord who was looking to remortgage a two-bed terraced house in Oxfordshire. His initial mortgage term with BM Solutions had come to an end so he was paying the lender’s standard variable rate (SVR), currently 4.84%.
The client was unaware that BM Solutions provides a speedy product transfer facility through registered intermediaries which in this case meant no underwriting, no lender arrangement fee, no legal fee and no valuation fee when switching to another BM Solutions product.
After considering the various options, the client chose a 4 year fixed rate at 4.29%. We then emailed him a declaration document, which he signed and returned the same day (by email). The declaration was forwarded to the lender and the entire transfer was completed within 24 hours. In addition to the saving made on fees, the client’s mortgage payments were reduced by £50 pcm.
Here are the details of the deal:
Property value: £120,000
Loan amount: £84,972
Rate: 4.29% 4 year fixed
Term: 9 years interest only
Lender arrangement fee: nil
Mortgage payment: £304 pcm
Rental income: £500 pcm
Gross yield: 5%
Consultant: Gavin Elley, 01625 416 398