We were approached by a professional landlord looking to remortgage a three-bed flat within a converted semi-detached house in Kent. His initial term with BM Solutions had come to an end which meant he was now stuck on their standard variable rate (SVR) – currently paying 4.59%.
The client had tried approaching a high street lender for a remortgage, but had been declined as the rental income on the property was not sufficient to secure a mortgage under the stricter affordability tests imposed by the PRA in January of this year. After developing a good relationship with his tenants he did not want to increase their rent.
The client was unaware that BM Solutions provides a speedy product transfer facility through registered intermediaries. This means – no underwriting, no arrangement fee, no legal fee and no valuation fee when switching to another product with BM Solutions.
More than happy with this option, the client selected a 2-year fixed rate. We emailed him a declaration form, which he signed and returned the same day.
We then sent this form on to BM Solutions and the entire transfer completed within 24 hours. The new rate has saved the client £182 per month in mortgage payments.
Property value: £260,000
Loan amount: £150,750
Rate: 3.39% 2 year fixed rate.
Term: 13 years interest only
Mortgage payment: £426 pcm
Original monthly payment: £608 pcm
Lender arrangement fee: Nil
Rental income: £700 pcm
Gross yield: 3.23% pa
Consultant: Jeni Browne, 01732 471647
7th March 2017