We were approached by a married couple who own three buy to let properties in their personal names.
They were looking to increase their monthly cash flow by remortgaging one of their properties – a two-bed flat in Kent.
Their existing mortgage was a discounted tracker which was due to revert to the lender’s Standard Variable Rate (SVR) pushing their monthly payments up to £390 pcm.
The client tasked us to find them a fixed rate deal with lower monthly payments.
We sourced a high-street lender that offered a low two year fixed rate saving the clients’ £220 each month.
The product also came with a free valuation and free legal work which kept the overall cost to the clients to minimum.
Here are the details of the deal:
Property value: £160,000
Loan amount: £96,000
Rate: 2.15% fixed for 2 years
Term: 25 years interest only
Mortgage payment: £170 pcm
Original mortgage payment: £390 pcm
Saving: £220 pcm
Lender arrangement fee: £999
Rental income: £800 pcm
Gross yield: 6% pa
15th March 2016