Switching Lenders Secures Best Rates For £1.65m Central London Property For US Law Partner

Switching Lenders Secures Best Rates For £1.65m Central London Property For US Law Partner

Area
Central London
Capital Raised
£1.2m

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.  

BUT... 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 loantheir bank waagain 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 of the property.  

Wcalculated 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. 

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. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

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.

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.

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. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

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.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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