We were approached by a part-time landlord who was looking to reduce his monthly mortgage payment on one of his rental properties – a three-bed terraced house in Dorset.
The client works as an accountant and has a small portfolio of rental properties held in his personal name.
At the point of contacting us the mortgage on the rental property in question had come to the end of its initial term.
This meant the client was now paying at a rate of 4.49% - the lender’s reversion rate.
After looking into the options available we managed to find a rate priced at not only half of the current rate, but with free legals and a free valuation too! Saving the client £468 pcm.
Here are the details:
Property value: £430,000
Loan amount: £244,000
Rate: 2.24% 2 year tracker
RTI: 125% @ 5.25%
Term: 13 years interest only
Lender arrangement fee: £995
Mortgage payment: £456 pcm
Original payment: £924 pcm
Rental income: £1,475 pcm
Gross yield: 4.1% pa
Consultant: Jeni Browne, 01732 471647
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.