Case Study

Successful Remortgage Solution for Buy-to-Let Property

Service provided:

Buy-to-Let (BTL) Remortgage & Equity Release

The challenge:

Our clients, a couple of experienced property investors, recently approached us with an urgent need to remortgage a buy-to-let property they had purchased with bridge finance. After successfully refurbishing the property, they were eager to release the maximum amount of equity to repay the bridge loan and fund their next BTL investment.

However, their situation was complicated by a recent missed mortgage payment, which had adversely impacted their credit profile. Another broker had quoted them rates starting at 7.29%, primarily due to this blemish on their credit history, making it difficult for them to move forward with their plans.

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.

The results:

Through our strategic approach and attention to detail, we achieved outstanding results for the clients:

Significant Rate Reduction: By securing a 4.69% mortgage rate, we saved the clients from paying substantially higher interest rates that could have eaten into their profits.
Full Equity Release: With the lender’s valuation reflecting the property’s true market value, the clients were able to release sufficient equity to clear their bridge loan entirely and fund their next investment.
Positive Cash Flow for Future Investments: The competitive mortgage terms mean the clients now have strong cash flow for both their current property and upcoming ventures, allowing them to continue expanding their BTL portfolio without the financial strain of excessive interest payments.