Jade Pinkerton saved her client a huge amount on his remortgage payments!
In our latest case study, our client approached us seeking assistance in securing the best mortgage rate for his property as his fixed deal, which we had previously arranged for him, was nearing its end. Facing the prospect of transitioning to the lender’s standard variable rate (SVR) at a considerable increase in monthly remortgage payments, our client entrusted us, as mortgage brokers, to find him the best possible deal on his remortgage. Despite significant rate rises, we managed to save our client a huge amount. Here’s how we did it.
Remortgage Payments At 8.74%
Our client came to us to help him secure the best mortgage rate on his current property as his fixed deal (Which we also secured for him a few years ago) was coming to an end. His previous deal, secured only 2 years previously was on a loan of £300,000 with a rate of 1.79%. For which he was paying £1,100 a month. As his deal was coming to an end, he was faced with falling onto the lender’s standard variable rate (svr) which was at a whopping 8.74%. Something that would have bumped his payments to £2,426 a month.
Securing A New Remortgage Rate
As mortgage brokers, our job is to ensure that our clients get the best possible mortgage terms and deal available for their circumstances, and to make sure that all of our clients are comfortable with their personal finances. Our expert advisor Jade Pinkerton contacted the client six months before his deal was due to expire, to make sure that everything was organised within a swift time frame, to minimise the stress that the client would go through with his remortgage. After meeting with the client and discussing his aims and ambitions with his property and mortgage, she identified that he wanted to fix another available mortgage product for two years again, at a rate that was manageable for him still.
As mortgage rates in the UK had increased significantly over the last to years due to various economic factors, the best rate available at the time of the initial discussion with Jade was 5.70%. Still better than the 8.74%, but this did mean that the client’s payments would unavoidably go up by £700. Although this was still manageable for the client, our advisors closely monitored the UK mortgage market fluctuations over the next 6 months for the client.
Keeping On Top Of The Market To Secure An Even Better Rate
A few months later, rates did start to drop, and due to our diligence and knowledge of the UK mortgage market, our advisor jumped at the best available rate for the client and managed to switch his product to a rate of 4.70%. This meant that his monthly payments would now go down to £1,629. Saving him around £200 a month on his property finance. And £797 if he had stayed on the svr.
The client was over the moon with the product that we managed to secure for him, and it meant that he was much more comfortable with his payments per month. In two years’ time when rates have hopefully come down again, our advisors will spring into action and help him to remortgage again to an even more competitive deal.
Speak To A Remortgage Advisor
If you or anyone you know has a mortgage deal coming to an end and are facing the prospect of going onto a high standard variable rate, then please feel free to give our team a call today. We might be able to save you some money per month. We are here to help.
