The clients: Husband and wife are looking to remortgage their home to pay off some outstanding debts. Both are employed and have excellent credit profiles; however, due to an unexpected historical tax bill and needing to replace their family car, the clients wanted to raise an additional £23,000.
The property: Located in a busy East Sussex seaside town, the property is a 5-bed detached house which the couple bought in 2017 for £480k with a two-year fixed rate mortgage costing them £1,443 pcm.
The finance: The clients’ existing mortgage is about to revert to the lender’s Standard Variable Rate which means their monthly payments will increase to £1,946.
They had already asked their mortgage provider if they could get either a further advance or product transfer, but the terms offered were not particularly attractive, so they asked for our help to find them a better deal.
In particular, they wanted:
- A five-year fixed rate to protect them against short term rate rises
- A lender that turns around applications quickly
- The ability to add the lender arrangement fee to the loan.
We monitor application processing times, so this immediately whittled down the number of lenders which might offer a solution. We then checked which ones allow borrowing for debt consolidation and adding fees to the loan.
After a few calculations we identified a competitive rate which will allow the couple the uplifted borrowing they need and mean that their monthly payments will be £309 less each month than if they had not borrowed more and simply reverted onto their existing lenders SVR!
As an added bonus, this new lender is offering a free valuation and £500 cash back.
These features and benefits really appealed to our clients and so we obtained an Agreement in Principle that very day to ensure that we were on the right track.
The application process: To support the mortgage application, the clients supplied us with proof of identity, address and income. Just four days later, we were delighted to inform our clients that the lender had issued them with a formal offer for the full amount.
The deal has been timetabled to complete to coincide with the end of the two-year fixed rate tie-in period on their existing mortgage which means they won’t have to pay any Early Repayment Charges. Here are the details:
Property value: £490,000
Loan amount: £335,000
Rate: 2.02% (3.3% APRC) 5 year fixed
Term: 21 years capital and interest
Lender arrangement fee: £995 added to the loan
Mortgage payment: £1,637 pcm
Mortgage adviser: Ashley Jones, CeMAP
Call: 01732 471694 or 07853829939
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26th February 2019