£650,000 remortgage from capital repayment to interest-only to lower monthly costs

Client profile

Our clients worked as a finance director and a nurse, and they were looking to remortgage their existing property. Their current fixed-rate mortgage was due to end on 31 August, and they approached us in April to discuss their options and secure a competitive deal ahead of time.

The mortgage challenge

Although the remortgage itself was relatively straightforward, the clients wanted to move from a repayment mortgage to an interest-only arrangement. This required careful consideration of lender criteria, particularly around:

• Minimum equity requirements
• Loan-to-value (LTV) limits
• Affordability assessments
• Future repayment strategy

The clients planned to make a significant lump-sum reduction to their mortgage balance at their next renewal, making an interest-only solution a suitable short-term strategy. We also reviewed whether a product transfer with their existing lender could provide a competitive alternative.

How we helped switch our clients to interest-only

Our role was to provide expert guidance on the suitability of an interest-only mortgage and identify lenders whose criteria matched the clients’ circumstances.

Thanks to their strong household income and healthy equity position, lender choice was not restricted. This allowed us to focus on securing the most competitive product available rather than overcoming affordability challenges.

After reviewing the market, we recommended a two-year fixed-rate mortgage with free legal services, offering excellent value and flexibility for the clients’ future plans.

The interest-only mortgage solution

• Mortgage type: Remortgage
• Repayment method: From capital repayment to interest-only
• Lender: A large building society
• Product: 2-Year Fixed Rate
• Rate secured: just over 3.75%
• Additional benefits: Free legal service and 10% overpayments per annum

At the time of application, the product ranked among the most competitive rates available in the market.

The outcome

The application was submitted on 18 May and the mortgage offer was issued on 29 May.

The process could have been completed even sooner, but there were minor delays while supporting documentation was provided and the valuation appointment was arranged. Once the valuation took place, the mortgage lender issued the offer promptly, with the physical valuation report being returned within a day.

With their new mortgage secured well ahead of their existing deal expiring, the clients gained certainty over their payments and the flexibility to implement their longer-term repayment plans.

Lead source: Website enquiry.

Interest-only mortgages can still be an excellent solution for the right borrowers, but understanding lender criteria is essential. By providing tailored advice and comparing the market, we were able to help these clients secure a competitive rate and a mortgage structure that aligned with their future financial goals.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage