Location: London

Clients: Couple both aged 31 (both professional)

Requirements: Remortgage with a view to let in the near future.
Client’s Comments: Our current mortgage is coming to the end of its special rate period, which currently is a 2 year fixed rate. We are interested in remortgaging to another fixed rate as we are concerned that interest rates will increase in the near future. We are also looking at purchasing a new home in the next 6 to 12 months and will be looking to rent out our current home as we do not want to sell. We are concerned that if we have to switch to a buy to let mortgage at this point we will have to pay charges.

Solution: As you may wish to rent out your current property within the next 6 to 12 months. I can remortgage you to a lender on a residential mortgage who will offer consent to let at a later date and will also allow you to stay on the current scheme and therefore you will not incur any penalties. I can also look at lenders who are willing to cover the cost of the valuation and solicitor’s fees. The lender may charge a small administration fee for arranging this.

Costs: £599 arrangement fee added to the loan, free valuation and no solicitor’s fees

Benefits: The clients were able to secure a competitive rate before their current rate expired with minimal setting up costs avoiding having to revert with their existing lenders variable rate (an increase of 1.5%) They were also able to let the property out with the new lender at the same rate therefore avoiding any redemption penalties for switching to a ‘Buy to Let’ mortgage.

Additional Information: We also arranged the mortgage on the new purchase and also advised on all the client’s protection needs and arranged the policies.