The solution:
We took on the case with the goal of not only securing a more competitive rate but also ensuring the property was valued at its true market worth, not just the price at which it was purchased through auction. Our process included:
In-Depth Research and Lender Selection:
- We conducted comprehensive research to find a lender who would take a more nuanced approach to the missed payment, rather than automatically charging a high interest rate based on the credit mark alone.
- After assessing multiple options, we identified a lender willing to consider their case more favourably, looking at the broader financial situation rather than just the missed payment.
Securing a Competitive Rate:
- Despite the missed mortgage payment, we successfully negotiated a remarkably lower rate of 4.69%, significantly better than the 7.29% offered by other brokers.
- This lower rate was crucial to ensuring the clients could maintain healthy cash flow and move ahead with their next property venture.
Achieving an Accurate Property Valuation:
- One of the key successes was ensuring the property was assessed based on its open market value post-refurbishment, not just the auction purchase price.
- This higher valuation allowed the clients to release enough equity to fully repay the bridge loan and fund their next BTL investment, positioning them for future growth.