The director of a IT solutions company approached us looking for help to reduce the monthly mortgage payments on his home. Currently paying £2,200 per month (on his lender’s standard variable rate), he was hoping to secure remortgage onto a more competitive rate.
As well as running his IT business, the client is also a landlord with a portfolio of 20+ properties.
Many residential lenders will not lend to landlords with large portfolios, even if they also have a “day job” and aren’t reliant on the rent for income. So, we approached a high street bank, which we know, does not make this stipulation and is happy to include both the rent and the business income when calculating affordability.
The bank offered the client a rate which would reduce his monthly payments by a massive £671. Here are the details of the deal:
Property value: £850,000
Loan amount: £468,829
Rate: 1.89% 5 year fixed
Term: 35 years capital and interest
Lender arrangement fee: £999
Mortgage payment: £1,529 pcm
Original mortgage payment: £2,200 pcm
Consultant mortgage adviser: Ashley Jones, 01732 471694 or 07853829939
15th August 2017