Key facts:
Clients had already purchased a property in Putney and were looking for a Putney Mortgage Advisor who knew the area well and had an in-depth understanding of the area to help.
The property that the clients had purchased needed a lot of structural and cosmetic work done to it to bring it up to liveable standards. Unfortunately, the clients did not have enough liquid funds to complete the renovations themselves and needed to discuss their options with a Putney Mortgage Advisor.
Needing quick cash to complete the home improvements and then a more permanent mortgage solution for the future, the clients approached Putney Mortgage Advisor Oportfolio for help.
How did we help our client as a local Putney Mortgage Advisor?
The clients were in the fortunate position to be able to purchase a property in idyllic Putney, Southwest London. It soon became clear to them that the property would need some extensive improvement work carried out before it was suitable for them to live in.
Our clients approached us because of our high standing in Putney and surrounding areas and our extensive knowledge of the southwest London market. We have great relationships with the local Putney estate agents and come highly recommended.
Our clients wanted to speak to an expert advisor who saw the same potential in the property that they did and understood the value of the property being situated in Putney.
Oliver, our advisor who has been based in Putney for over 13 years, knew the location of the house very well and was eager to help with their ambitious project. He had an appointment with the clients to get a better understanding of what exactly the clients were attempting to do with the new property and what they hoped to achieve in a long-term mortgage plan.
Based on the discussion and advice that Oliver had with the clients everyone agreed that the best route forward was to start with a 2nd charge loan from a commercial lender.
This 2nd charge loan would run alongside their standard mortgage and allow the clients to access the necessary funds that they needed for a short period of time to complete the works on the new home.
Once this loan had been arranged, the next plan of action was to try and consolidate the 2nd charge loan and their existing mortgage into one manageable mortgage. This proved to be a bit more complicated than you might think.
The ideal scenario would be to remortgages the property to pay off both existing loans and only have one loan however the mortgage lenders were not entirely happy with remortgaging to cover a second charge, especially one taken out so recently.
Being a local Putney Mortgage Advisor, Oliver spoke directly with the mortgage underwriters and explained to them the merits of a property in Putney and the significant increase to the value of the property that the clients would be adding by carrying out the improvements.
This added confidence instilled in the lenders by a local Putney Mortgage Advisor convinced the lender that this was a strong mortgage application and they agreed to facilitating a complete remortgage for the clients.
The property has now had the improvements carried out and it is a lovely family home.
What was the rate?
The loan was secured as a part capital repayments/part interest only mortgage on a fixed rate for 2 years at 2.19%. After the fixed period, the rate would revert to the bank’s 4.00% standard variable rate.
At which time we’ll contact the clients again to discuss remortgaging onto a new competitive fixed rate and re-structuring their mortgage.
The overall cost for comparison is 3.8% APRC. The arrangement fee was £2,499, and early repayment charges were applied. The mortgage term was 22 years.
