The client – a self-employed IT contractor and part-time landlord contacted us looking to reduce his monthly mortgage payments on one of his rental properties.
The property in question is a four-bed flat, on the ground floor of an ex-local authority block in Canary Wharf.
The client wasn’t looking to raise any capital from the transaction, he simply wanted a lower monthly payment.
Fortunately for the client the value of the property had increased since it was purchased three years ago, which meant we were able to arrange a competitive rate with a low loan to value.
The total saving for the client was just under £500pcm.
Here are the details of the deal:
Property value: £550,000
Loan amount: £300,000
Rate: 3.14%2 year fixed
Term: 20 years interest only
Borrower: individual application
Lender arrangement fee: £1,995
Mortgage payment: £780 pcm
Original monthly payment: £ 1,260 pcm
Rental income: £2,300 pcm
Gross yield: 9.2% pa
Consultant: Andy McOwat, 01625 416396