Case Study –Remortgage | Rate Expiring

Property Value	£1,670,000
Loan Amount	£978,000
Location	London
LTV	58%
Achieved Rate	3.49%
Completed	January 2023

The Client

Our clients had a sizable mortgage with an attractively low-interest rate. However, if left unattended, the rate would have skyrocketed by 500%. Understandably, they were very worried about the resulting financial instability. The property purchase, made two years ago, was a strategic move to avoid the hassles of relocation. Thus, the prospect of a significant payment hike, given the already substantial borrowing, was a cause for concern.

The Solution

We were thrilled to have found a workable solution for our client, providing them with financial security for the next seven years. Although the payment plan we presented was relatively more expensive than their previous option, we succeeded in arriving at a figure that was both manageable and significantly more comfortable than the current lender's unpredictable variable rate.

The Henry Dannell Difference

We conducted a thorough assessment of the client's financial situation and devised an innovative solution by offering an interest-only option for a portion of the loan. This allowed us to bring the client's payments to a level that they would find comfortable. Although they were initially apprehensive about being partially on interest-only and not making regular payments towards the principal mortgage, we crafted a comprehensive plan that would rectify the situation over a ten-year period. Specifically, over the course of the three years following the fixed-rate period, we would significantly reduce the term to offset the duration of the interest-only period.