Case Study: Helping Buy-to-Let Landlords in Sandhurst

Introduction

For buy-to-let landlords, managing finances effectively is crucial to ensuring long-term success. This case highlights how we supported property owners in Sandhurst to secure a hassle-free product transfer with their existing lender, providing flexibility for potential future plans.

The Scenario

The landlords owned a buy-to-let property in Sandhurst and were approaching the end of their fixed-rate mortgage with The Mortgage Works (TMW). They sought to secure a new product with their current lender to avoid the complexities of switching.

Their main priorities included:

1. 2-Year Fixed Rate: They wanted to maintain flexibility, as they were considering selling the property within two years.
2. Minimal Fees: They preferred a smaller fixed fee (£1,000–£2,000) rather than a percentage-based fee, to keep costs predictable.
3. Same Mortgage Term: Retaining the existing 20-year term ensured they could manage the property for the long term if they decided not to sell.

The landlords also appreciated that a product transfer with their existing lender required no additional documentation, valuations, or underwriting.

The Challenge

Key challenges included:

1. Simplified Process: Staying with their current lender was critical to avoid the complexities of sourcing a new lender or providing extensive paperwork.
2. Balancing Costs: Securing a product with minimal fees while aligning with their short-term plans required careful selection.
3. Maintaining Flexibility: The mortgage needed to provide options for either retaining or selling the property after two years.

The Process

Step 1: Understanding the Customers’ Needs

We began by confirming the landlords’ preference for a 2-year fixed-rate product, prioritising a simplified process and minimised fees. Their focus was on flexibility and affordability for their buy-to-let investment.

Step 2: Reviewing TMW’s Options

We reviewed the product transfer options available through The Mortgage Works, focusing on 2-year fixed-rate products with flat fees that met their budget preferences.

Step 3: Streamlining the Process

Since this was a product transfer, no additional documentation, underwriting, or valuations were required. This ensured a seamless transition without delays. As existing clients, we waived our fee to further streamline the process.

Step 4: Finalising the Transfer

Once the landlords selected the optimal product, we facilitated the paperwork and liaised with TMW to ensure the transfer was completed efficiently.

The Solution

TMW provided a tailored product transfer solution that aligned with the landlords’ needs:

• Loan Amount: £260,597
• Product Type: Interest-Only Mortgage
• Rate: Fixed for 2 years
• Fees: Fixed fee within the £1,000–£2,000 range
• Term: Retained 20 years

This solution offered affordability, flexibility, and a hassle-free process.

Why This Solution Worked

1. Simplified Process: Staying with TMW avoided the need for valuations, underwriting, or additional paperwork.
2. Flexibility: The 2-year fixed rate provided options for either selling or retaining the property.
3. Cost-Effectiveness: A flat fee ensured predictable costs, aligning with the landlords’ financial strategy.
4. Long-Term Security: Retaining the 20-year term ensured the property could continue to be managed effectively.

The Outcome

The landlords successfully transitioned to the new 2-year fixed-rate product, ensuring financial stability and flexibility for their buy-to-let investment. Key benefits included:

• Streamlined Process: A seamless product transfer with minimal hassle.
• Affordability: Fixed fees and predictable payments supported their financial goals.
• Flexibility: The short-term product allowed them to reassess their plans after two years.

Closing Thoughts

For buy-to-let landlords, navigating product transfers can be straightforward with the right guidance. This case demonstrates the importance of a tailored approach to balancing affordability, flexibility, and convenience.

If you’re considering a product transfer or looking to explore options for your buy-to-let mortgage, contact us today. We’re here to help you secure the best solution for your property investment needs.