The client has worked with us for many years and has a substantial portfolio of buy to let properties. Knowing that one of his existing buy to let mortgages was nearing the end of its initial term, we got in touch to suggest a review of his portfolio finances.
The client agreed and we quickly discovered that there were numerous refinancing options that could save him money on the monthly mortgage payments of the property in question.
On the advice of his accountant, the client had decided to continue to own the property personally for the time-being.
The large terraced property is located in a popular town on the south coast.
As the client didn’t need to raise any capital, he chose to switch to a two-year fixed rate deal with the existing lender because it would save time and money - no underwriting, no legal fees, no valuation fees and a massive saving of £433 per month in mortgage payments.
From start to finish the transaction completed in just 14 working days, here are the details.
Property value: £643,925
Loan amount: £340,494
Rate: 3.29% 2 year fixed
RTI: 125@ 3.99%
Term: 20 years interest only
Lender arrangement fee: £999
Mortgage payment: £937 pcm
Original mortgage payment: £1,370 pcm
Rental income: £2,000 pcm
Gross yield: 3.7% pa
Consultant: Chris Longhurst, 01732 471607
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
21st November 2016