
Switching Lenders Secures Best Rates For £1.65m Central London Property For US Law Partner
The Scenario
Two years ago, our client was a newly qualified US law partner and purchased a property in Waterloo for £1.45m (purchased in USD) via a private bank. At the time, they required an 85% LTV and took out a two-year fixed-rate mortgage on the property.
The clients recently got back in touch, explaining that this two-year deal was shortly coming to an end and they were looking to re-evaluate their mortgage options.
However, their bank had argued that the property had not increased in value since their purchase two years ago, and they were still using a property value of £1.45m to calculate their new offers.
In addition, despite the fact that the clients had repaid some of the capital from their original loan, their bank was again only offering 85% LTV products, with interest rates of 2.64% for another two-year fixed-rate loan.
The Solution
We carried out a detailed review of the clients’ property and decided that we disagreed with the valuation their bank had provided.
We looked at national and local property market activity for the past two years and analysed similar properties currently on the market in the same area to get a more comprehensive and current valuation.
We calculated that a fair value was £1.65m. £200,000 Higher than their bank’s current valuation.
From here, we advised that the clients switch lenders, as this would allow for a new valuation to be carried out.
The new valuation was provided by the bank for free, and so there was no risk or cost to the client in exploring the benefits of switching lenders.
The new lender valued their property at £1.65m, agreeing with our expectations, and this allowed us to negotiate favourable lending rates for our clients.
We were ultimately able to secure a two-year fixed-rate mortgage of 1% with the new lender, at a 75% LTV.
Throughout the term of the loan, this will save the client approximately £37,884 over two years.
Additionally, if the clients were to have opted for a five-year fixed-rate loan to take advantage of the current market rates, this would have saved them a staggering £92,977 over the full term.
We never underestimate the importance of exploring all of the options available to our clients. Sticking with the same bank might seem more convenient, and you might think that you will receive preferable rates due to the loyalty and trust built between you and your bank.
But this isn't always the case, and you could be overpaying just by not questioning your existing bank.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
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George Abouzolof
Finance Broker
Bristol
0117 403 3444
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for expat clients. Book a free telephone consultation with me at a time to suit you
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Sam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Fergus Allen
Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Jacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you
Jack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Alex Chambers
Senior Finance Broker
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you:
Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you
Robert Gibb
Senior Finance Broker
Bristol
0117 959 5094
Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.
Book ConsultationAdam Arnott
Associate Director
Bristol
0117 205 0214