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Our client asked for help to secure a buy-to-let remortgage to avoid her lender's high reversion rate.

As a professional landlord, she knew buy-to-let rates were impressively low as Trinity Financial arranged the mortgages on her other properties quite recently.

Even though the house in Chelsea was worth £3 million, she was concerned it was not generating enough rent to qualify for a competitively priced deal. This was because of the new buy-to-let rental stress test assessments.

Solution

Our specialist buy-to-let broker checked the bank’s existing customer system to confirm the rate they were offering her to stay. He then researched the market to see if there was a more attractive option.

After ensuring there was not a more appropiate rate with one of the other buy-to-let lenders, he arranged the product transfer application to swap rates.

One of the benefits of staying with a bank offering competitive terms to existing customers, is they are unlikely to reassess the client's application unless there has been a significant change.

Case details

Property: Investment flat in Chelsea

Value: £3,000,000

Mortgage: £1,000,000

Rate: 1.85% fixed until 31 January 2019

Reversion rate: 4.74% - 0.25% over the 4.49% BBBR

The overall cost for comparison is 4.38% APRC representative.

Lender’s arrangement fee: £1,499

Mortgage term: 18 years

Repayment type: Interest-only

Loan-to-value: 33%

Early repayment charge: 3% until 31 January 2019.

Overpayments: Up to 10% per annum without charge.

Representative example: A mortgage of £1,000,000 payable over 18 years, initially on a fixed rate for 24 months at 1.85% and then on a variable rate of 4.49% for the remaining 16 years, would require 25 monthly repayments of £3,955.92 followed by 191 monthly repayments of £3,955.92. The total amount repayable would be £1,796,009 made up of the loan amount, plus interest (£794,180) and fees of £1,499. The overall cost for comparison is 4.38% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

To secure a £1-million buy-to-let remortgage call Trinity Financial on 020 7016 0790.

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