Our experienced landlord client returned to us seeking a competitive refinance deal for two semi-commercial properties. With mortgage rates originally secured in 2020 and due to expire, timing was key.
Read on to discover how we reduced our client’s mortgage costs and helped position their portfolio for future growth.
At a glance:
- Experienced commercial and residential MFB client
- Two semi-commercial properties in the outskirts of London, consisting of residential flats and retail units
- A review of the whole market to find the most competitive product transfer (PT) or remortgage rate
The Case:
Our long-term client, experienced across the buy to let and commercial investment space, approached us to secure a new mortgage deal for two properties we had worked on in 2020. The properties in question were both semi-commercial units in the outskirts of central London.
With the current fixed rate nearing its end, we acted swiftly to explore the most cost-effective refinancing options. Our goal was to secure a competitive rate and support the client’s broader portfolio plans.
The Challenge:
We completed a detailed cost analysis comparing product transfer (PT) options with full remortgage deals. Despite the costs, which included the set-up fees, solicitor costs and valuations across the two properties, switching lenders proved to be the most cost-effective option for our client.
By opting for a remortgage, our client saved approximately £75,000 over the term of the deal.
At MFB, we go one step further than just finding you the right rate. We can complete a Property Portfolio Review to ensure your property finances are running efficiently.
By capital raising against two of our clients’ existing properties, we paid off the outstanding loan on another. With that property now unencumbered, the client has greater flexibility to leverage this in the future to fund any new purchases.
As is common in the current market, both properties were subject to slight down valuations during the application process. However, we were able to adjust the interest rate banding from 65% to 75% LTV. This avoided restarting the application and ensured the client still secured a strong deal.
By reviewing the whole market, we helped our client reduce their mortgage costs and position themselves for future growth. Our client was delighted with the outcome.
The Finance:
Property one value: £705,000
Property two value: £425,000
Loan amount: £847,500
LTV: 75%
Rate: 6.05%, 5-year fixed*
Term: 10 years, interest-only
Monthly mortgage payment: £4,607.30
Lender arrangement fee: £25,425
Monthly rental income: £7,050
Gross yield: 7.5%
*Rates as at March 2025
Next steps
If you have a similar project you would like to discuss, get in touch with one of our team.
