Couple 2 purchased their home 2.5 years ago, the property required modernisation including an extension, the layout reconfiguring including moving the kitchen. They put a large deposit down and were in the 2nd year of their 5 year fixed rate at 3.25% with a specialist mortgage lender. They had gone to this mortgage lender due to App 1 being paid via an umbrella company in a previous job. App 1 had now changed employment and is employed via PAYE. They were paying £480 per month with their current mortgage lender and their loan to value (LTV) at the time of buying was 50% LTV.
They asked me to look at re-mortgaging and if any better products were available due to the drop in interest rates and a rise in property prices, with the possibility of also borrowing additional funds to complete their home improvements.
We reviewed their situation, looking at their current mortgage balance and any early repayment charges (ERC’S) they might incur due to leaving the fixed rate early. The ERC’s be £3500, which we included in the new total borrowing amount along with the mortgage balance and additional funds to complete the home improvements. Their home had also slightly increased in value since they purchased it 2.5 years ago, meaning although they were borrowing more we could keep their LTV (loan to value) around the 50%. This since left them plenty of equity within the property.
We secured them a rate of 1.39%, with a mainstream mortgage lender, this included a free valuation and free legals to transfer the mortgage from the current lender to them. The client incurred no cost by moving lender, they increased the loan by £25000 for the desperately needed home improvements and repaid their existing lender and still managed to keep payment under £500.
