A married couple, both experienced investors were looking to save money on their monthly mortgage payments by transferring onto a better rate.
The property in question was a 4-bed terraced house in London. They had recently carried out some light refurbishment work on the property, which had resulted in an increase in the property’s value.
This increase meant that the couple had lowered their loan to value, allowing them to transfer onto a better rate. The couple were keen not to transfer to another lender, as this would incur additional costs.
Fortunately we were able to source a new, lower rate from their existing lender. Here are the details of the deal:
Property value: £560,000
Loan amount: £282,000
Loan to value: 51%
Rate: 2 year fixed at 3.29%
Term: Mirrors the original term of the mortgage 22 years
Monthly mortgage payment: £771 down from £1,137
Monthly rental income: £3,000
Annual yield: 6.4%
Lender arrangement fee: £995 added to the loan amount
25th March 2015