How Jeni Browne, head of sales saved her client over £10k a year by remortgaging his entire portfolio.
So, recently I was contacted by a good client of mine. He’d been wondering if there was a chance I could help him reduce his mortgage payments across his property portfolio.
His portfolio consists of a mixture of vanilla buy to let and HMO property, all of which were mortgaged on a rate of around 5%.
Now there were a few challenges in finding a suitable rate for this scenario.
1) The property portfolio includes HMO property with over six rooms
2) His income is made up entirely from rent
3) He is in his 70’s
4) His portfolio totals to circa £900k, meaning percentage based arrangement fees would be pretty chunky
5) The client was looking to get all of his properties remortgaged with the same rate and lender.
So, I have to say I was as pleased as punch to be able to offer my client a 75% five year fixed rate at 3.85%* (4.9% APR) with a flat arrangement fee of £1,995 per property, free valuations and legal costs.
I guess what surprised me was just how much my client stood to save even with his complex scenario by simply remortgaging, something a lot of my clients could benefit from.
And so the moral of this story - don't just assume that you can't save any money, always take the opportunity to get your arrangements reviewed to ensure you’re ahead of the game.
We offer a free review service without obligation, so unless you go ahead with a remortgage you won’t pay a penny! So what do you have to lose?
Simply download and complete our Property Portfolio Review spreadsheet and return it to us. If you have your own spreadsheet, don’t waste time re-entering the detail, just send us yours instead.
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*Fixed at 3.85% for 5 years reverting to Lenders LIBOR + 4.75% (LIBOR currently 0.4%, variable). For purchases and remortgages. Early Repayment Charge: 5% of the amount being repaid until 30/06/2019, then 4% until 30/06/2021, then 3% until 30/6/2022 from drawdown. Overall Cost for Comparison:4.9% APR. Loan to Value: 75% loan to value up to £500,000 loan amount, 65% loan to value up to £2,000,000 loan amount. Lender Arrangement Fee: £1,999 added to loan. Broker Fee: A broker fee of £497 will apply (other fee options available). Repayment Options: Interest only or repayment. Rent to Interest Cover: The rental income must exceed 130% @ 4%. Minimum Income Required: £25,000 per annum.
22nd November 2016