When faced with tight deadlines and specific requirements, finding the right mortgage solution quickly is critical.
This case highlights how we helped a landlord secure a product transfer to avoid a variable rate, ensuring financial stability while accommodating the limitations of their remaining mortgage term.
The Scenario
Our client owned a buy-to-let property in Bristol and had an interest-only mortgage that was about to revert to the lender’s standard variable rate in just 10 days. With such a short timeframe, refinancing to a new lender was not a viable option.
The client’s objectives were clear:
- Secure a Fixed Rate Quickly: To avoid the financial uncertainty of a variable rate, the client sought a fixed-rate product.
- Short-Term Product: Due to the limited remaining term on the mortgage, only a 2-year fixed rate was feasible.
- Simplified Process: The client preferred a product transfer with their existing lender to expedite the process.
The Challenge
This case had several time-sensitive challenges:
- Imminent Reversion to Variable Rate: With only 10 days before the mortgage would switch to a higher variable rate, time was of the essence.
- Limited Product Options: The remaining term on the mortgage restricted the client to a 2-year fixed-rate product, reducing the pool of suitable options.
- Focus on Simplicity: The client was not interested in exploring refinancing options with new lenders due to time constraints and the complexity of switching lenders.
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The Process
Step 1: Understanding the Client’s Needs
During our consultation, we confirmed the client’s priorities: securing a 2-year fixed-rate product quickly, avoiding the variable rate, and keeping the process simple and cost-effective.
Step 2: Researching Product Transfer Options
Given the client’s preference to stay with their current lender, BM Solutions, we reviewed their available product transfer options. Our focus was on finding the most competitive rate within the lender’s offerings while ensuring the transfer could be completed within the tight timeframe.
Step 3: Engaging with the Lender
We liaised directly with BM Solutions to streamline the product transfer process. By leveraging our relationship with the lender, we ensured the application was processed quickly and efficiently, avoiding any unnecessary delays.
Step 4: Finalising the Product Transfer
We guided the client through the product transfer paperwork, ensuring everything was completed accurately and submitted on time. This proactive approach minimised the risk of delays as the variable rate deadline approached.
The Solution
BM Solutions offered a competitive 2-year fixed-rate product that met the client’s needs:
- Loan Amount: £156,009
- Product Type: Interest-Only Mortgage
- Rate: Competitive fixed for 2 years
- Additional Benefits: The simplicity of a product transfer avoided legal or valuation requirements, expediting the process.
Why This Solution Worked
- Quick Turnaround: The product transfer was completed well before the variable rate deadline, providing immediate financial stability.
- Competitive Rate: The fixed rate ensured predictable payments, avoiding the uncertainty of fluctuating interest rates.
- Tailored to Client’s Term: The 2-year fixed-rate product aligned with the limited remaining term on the mortgage.
- Cost-Effective: Staying with the existing lender eliminated additional fees, keeping the process straightforward and affordable.
The Outcome
The client successfully transitioned to a 2-year fixed-rate product, avoiding the variable rate and maintaining financial stability. Key benefits included:
- Predictable Payments: The fixed rate provided peace of mind with consistent monthly payments.
- Time-Sensitive Solution: The transfer was completed swiftly, avoiding any penalties or financial strain.
- Streamlined Process: By staying with their current lender, the client avoided the complexity of switching lenders.
Contact us today
If you, like this customer, are navigating the complexities of buy-to-let mortgages or facing tight deadlines, we’re here to help. At Kerr & Watson, we specialise in delivering tailored solutions to meet your specific needs, whether it’s a product transfer, refinancing, or advice on managing your property portfolio.
Contact us today to discuss how we can support your mortgage journey with the same dedication and efficiency that have brought peace of mind to customers across Bristol and beyond. Let’s work together to find the right solution for you.
