Couple save £220 pcm by remortgaging 2-bed flat

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

LTV: 60%

Rate: 2.15% fixed for 2 years

Term: 25 years interest only

Borrowers: Individuals

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