Case Study – Buy to Let Remortgage in Just 19 Days
5-STAR RATED AWARD-WINNING MORTGAGE BROKER ⭑⭑⭑⭑⭑
As our potential clients’ initial mortgage period on their buy to let had come to an end, they were now facing paying considerably more for their mortgage on the standard variable rate (SVR), which in this case actually meant that they would be paying more for the mortgage than the rent being received.
Clearly not a situation they wanted to be in for long and being a senior lawyer and experienced landlord based in greater London, the client wanted quick, expert guidance on the latest options, given the time pressures and mortgage pricing increases being tethered in. Hoping to redeem the current buy to let mortgage to avoid the hefty monthly payments on their £950k buy to let property, as well as raise additional capital to clear the outstanding mortgage balance on their £1.7m residential home, the client was looking for a remortgage of £310k.
Searching Google, the clients came across The Buy to Let Broker website and was quickly matched with buy to let mortgage aficionado Chris.
Speed was clearly an obvious challenge for this application as the clients needed to move quickly to avoid having to overpay for their current buy to let.
Additionally as the clients had previously lived in the buy to let property, FCA regulation dictated that a consumer buy to let product would be needed, thus restricting which lenders the clients would be eligible for. Chris needed to find a lender that would not only accept the clients’ particular background but would also offer the right stress testing to obtain the required amount to redeem both mortgages and also a lender that would allow raising finance for their own residential mortgage to be redeemed.
Undaunted by the complexities and timescales, Chris quickly set to work to find the clients a suitable solution.
After chatting with the clients to fully understand the finer details, as well as the long term plan for the property, Chris used his impressive market knowledge to narrow down the search for the right product from the right lender.
At the time, multiple lenders were increasing rates, changing criteria and very much so withdrawing products from the market daily, so to ensure there were no nasty surprises for the clients and more importantly no unnecessary delays, Chris approached several lenders upfront to verify the latest lending criteria and ensure they would accept the clients’ specific situation with regards to needing a regulated buy to let mortgage, before any application was submitted.
After quickly identifying Virgin Money as a suitable lender that would offer the clients the cheapest product over the initial term with terms to suit, Chris was able to not only comprehensively quote the clients but knowing the product was due to be withdrawn that evening, proactively contacted them to confirm they were happy with the mortgage details and with the help of the clients, garnered all of the paperwork needed, that afternoon. Dedicated case manager Ashley took over, checking the documentation and then diligently stayed late to secure the rate that evening, before the mortgage deal itself disappeared and was made unavailable by the lender. This saved the clients a noticeable sum over the 5 year fixed period – by securing a better rate than would have been possible just 24 hours later.
On top of this, Ashley went above and beyond to help the clients by recommending a high quality solicitor that she knew would be able to work to the tight deadline and could match the lender’s cashback offer. The client was more than happy with this suggestion and the recommended solicitor was appointed. Ashley then worked closely with the solicitor’s case handler to prevent delays, supplying required documentation and information to further streamline the legal process.
Lenders often offer “free legals”, however it puts us at the mercy of the conveyancers’ service timescales, this way, we can choose a solicitor to match the cashback offered in lieu of free legals thus ensuring a swift service by utilising our own legal contacts.
Proactively working closely with the clients and the lender, Chris and Ashley helped to get the underwriting completed, the valuation done, and obtained a mortgage offer in just 4 working days. Even more impressively, from the initial enquiry to completion took just 19 days in total.
Thanks to Chris’s dedication to the clients and industry knowledge meant that the clients were able to clear their existing residential mortgage balance as well as reduce the monthly buy to let mortgage from £2,600 to just over £1,300, a considerable saving indeed. The rental property is now more profitable with a lower monthly payment compared to the rental income and the clients’ property business is in a much more comfortable financial position long term.
Discover The Latest Buy to Let Remortgage Rates
Feefo Platinum Trusted Service Winner 2020, 2021, 2022, 2023 & 2024 ⭑⭑⭑⭑⭑
If you need to remortgage your buy to let or are getting close to the end of your initial benefit period, chat to a mortgage specialist to discover suitable solutions. Talk to us on 08009499410 or get started online right here.
Any property used as a security may be repossessed if you do not keep up with repayments on your mortgage.