Case Study
Buy-To-Let
Remortgage
Client Profile
Mr JW is an experienced homeowner, landlord and borrower who approached us after the initial benefit period on his buy-to-let mortgage came to an end.
Client Objective
To reduce his monthly mortgage payments and secure a more suitable mortgage arrangement after his lender moved him onto its Standard Variable Rate (SVR).
The Challenge
Following the expiry of his five-year fixed rate of 2.04%, Mr JW's mortgage reverted to the lender's Standard Variable Rate of 7.99%.
This resulted in his monthly mortgage payment increasing from £792 to £3,109, placing significant pressure on household finances and creating understandable concern about affordability.
A prompt review of his mortgage arrangements was required to identify a more cost-effective solution.
Our Mortgage Advice & Support
We carried out a comprehensive review of Mr JW's circumstances and assessed the available remortgage options.
During our research, we identified that the lender's indexed property valuation did not fully reflect the property's current open market value. We challenged the lender's valuation and requested a reassessment based on current market conditions.
The revised valuation improved the property's loan-to-value position, enabling access to more competitive mortgage products and interest rates.
Following our recommendation, Mr JW secured a new mortgage rate of 3.69%.
The Outcome
The new mortgage arrangement reduced Mr JW's monthly payment from £3,109 to £1,448.
This represented a monthly saving of £1,661 and reduced his mortgage payments by more than 50%, helping restore affordability and improve cash flow.
Key Benefits Delivered
- Comprehensive mortgage review completed quickly.
- Existing lender valuation successfully challenged.
- Improved loan-to-value position through updated property valuation.
- New mortgage rate secured at 3.69% instead of remaining on the lender's 7.99% Standard Variable Rate.
- Monthly mortgage payment reduced from £3,109 to £1,448.
- Monthly saving of £1,661 achieved.
- Mortgage costs reduced by more than 50%.
- Improved affordability and reduced financial pressure on the household budget.
- Ongoing mortgage review service provided to help avoid future payment shocks.
The client also benefited from our ongoing review service, helping ensure future mortgage opportunities are identified before any benefit period expires.
Summary
This case demonstrates the importance of reviewing mortgage arrangements before an initial benefit period ends. Through proactive mortgage advice, lender engagement and a successful valuation review, we secured a more competitive mortgage solution that significantly reduced monthly payments and restored affordability.
Like all Inform Mortgages clients, they continue to benefit from our ongoing mortgage review service, helping ensure their mortgage remains appropriate as their circumstances and the mortgage market change.