Our client had a mixed residential and commercial property portfolio in Manchester which was mortgaged to a High St bank. The client needed to:
- Remortgage the portfolio for a more competitive interest rate.
- Increase the borrowing to provide some deposit for future purchases.
The client’s current bank proposed a further advance at an interest rate of bank base + 1.5%. However, in common with most of the High St banks, the loan size was smaller than the client had hoped for because of the way the bank “stress-tested” the rental income against the repayment.
When we were approached by the client, one of our consultants went to meet him immediately. At the fact find we identified what was important to the client and using our specialist knowledge, we sourced the client:
- An extra £248,000 against the same property portfolio, so he could use the money as deposit for more properties.
- An identical interest rate of bank base rate + 1.5% with interest only on the residential units and 25 years capital and interest on the commercial. This keeps the instalments lower making the further advance more affordable.
- A saving of £7,500 on the Arrangement Fee against what his own bank was charging him.
- A standalone, specialist lender who would leave him alone and let him get on with his business. There will be no Relationship Manager breathing down his neck and no annual reviews. This is much better as it will save him time in meetings and money preparing cash flows and projections which High St lenders tend to need on a regular basis.
The client was delighted with his choice of All Property Finance and continues to build his portfolio in partnership with us.
To find out more about how we can help you, please contact All Property Finance.