What was the situation?
Just prior to the COVID-19 outbreak, I was approached by a high-flying company director who was looking to remortgage his residential property onto a better rate. During our initial conversations, my client also revealed a medium-term ambition to purchase a stunning holiday let in Devon. However, he felt that at this time, this was nothing more than a pipedream as he didn’t have the equity on hand to put down a sizeable deposit.
What was the issue?
Whilst the residential remortgage was a nice and straightforward procedure, my client believed he was unable to secure a holiday let mortgage as he had an insufficient deposit, but this wasn’t strictly true. My client was unaware that at the point of applying for his remortgage, I could also work on his behalf to release some extra money from his home in order to boost his deposit for the purchase of the holiday home.
What was the process?
After talking my client through the process of releasing equity from his residential property via his remortgage, I approached a lender who was happy to put the wheels in motion. Not only was my client able to release enough funds to majorly boost his deposit and buy his dream holiday home, but he now had the affordability to purchase a more expensive property at a much better rate as he was operating in a better loan to value (LTV) bracket.
In fact, once my client was happy to push ahead with the holiday let purchase, his offer came out two weeks before the pandemic took hold. On the actual day of lockdown, he agreed with the seller that he could get £50,000 off the value of the property so long as he exchanged by the end of the week. Working quickly and efficiently, I took this new information to the lender and was able to work closely with them in order to redo the figures, get them to reagree the terms and produce a new offer – all within the space of one day.
What was the solution?
I was first able to secure a fantastic remortgage facility for my client on a five-year fixed rate at 1.46% with the majority of the loan on interest only in order to keep payments down. This suited my client as he was unsure how the holiday let would fare from the off, and so an interest only arrangement granted him more disposable income with which to bolster his deposit for the holiday let purchase.
My client was thrilled as this remortgage rate was a lot more cost-effective than his previous residential mortgage – so much so, that despite borrowing the extra money from the lender, his mortgage was still cheaper as the rate had come down so much.
In regard to the purchase, the holiday let mortgage was agreed at less than 2.5% on a two-year fixed rate. What made this case such a brilliant one was that it highlights what is possible when you use a specialist finance broker to act on your behalf. As such, I was able to get my client an outcome which he thought was out of reach, by doing something he didn’t know he could do – both saving him money and making his holiday home dreams become a reality.
What does the client say?
“Anthony was outstanding – flexible in his approach and imaginative about how to put together the best deal for me. A real pleasure to do business with.”
Lending solutions with LDN Finance
At LDN Finance, our expert brokers have a wealth of experience in securing holiday let mortgages. We work closely with our trusted network of mainstream banks, private banks and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates and ensure you feel in control at every stage of the process. Get in touch with us today to organise an initial consultation.