The Client:
The clients had previously switched their former residential property onto a Let to Buy Mortgage to allow them to raise funds for a deposit on a new purchase. The fixed rate was due for renewal and therefore they needed to look at securing a new mortgage. Both applicants were full time employed with a clean credit history.
The Scenario:
Currently, due to slow service levels from lenders and increasing mortgage interest rates, the client wanted to lock in a rate a few months in advance to ensure the lowest rate possible. They were not looking to capital raise therefore we could explore both product transfer options as well as a full remortgage to a new lender. They informed us that a 5 Year fixed on interest only would be preferred due to the current economic uncertainty.
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The Solution:
Upon reviewing the options with their current lender, it was apparent that it could prove beneficial to assess the whole market to see if a new lender could provide a cheaper loan. A full assessment of the mortgage market was undertaken and it became apparent that a full Remortgage to a new lender, who were offering a free valuation and free legal service would save the clients over £1,500 across the 5 Years, compared with the Product Transfer options which existed with their current lender. The application was submitted and the Mortgage Offer was issued within 14 working days.
Summary:
When looking to obtain a new fixed rate it may often seem easier to carry out a Product Transfer with your existing lender, however as this example proves, it is certainly always worth speaking with an experienced Mortgage Broker who can offer a hands-on approach to your Buy to Let Remortgage to compare your options and see if money can be saved by remortgaging elsewhere.
To find out more and discuss your remortgage options with one of our highly experienced and CeMAP Qualified Mortgage Advisors, call us now on 03330 169 646. You can also fill in this short online form to get started. Our team of Residential & Buy to Let Mortgage Advisors will get back to you straight away.