Large BTL Remortgage at 70% Loan To Value For Singaporean Resident

By James Mcgregor on Apr 12, 2021

We currently work with many professional introducers. When working with introducers the key to building the relationship is to be able to offer their clients solutions that they can not obtain elsewhere. This is the first time we have worked with this particular introducer and we look forward to future deals.

The client was initially introduced to us as a previous adviser was unable to offer them a solution. The client then went and found their own solution. They had already had a formal offer from another lender. So we were already set the challenge to deliver a better outcome than they had already been offered.

The client was currently paying 5% on their current mortgage. The solution they had been offered would reduce their rate to 3.79%.The maximum mortgage offered was £975,000 on the new mortgage offer.  This meant the client would have to pay down£35,000 of their mortgage which would make it quite tight for them in terms of their current savings holdings.  

The other issues on this case included.

-         Global affordability was tight

-         Income paid in Singaporean dollars

-         The property was down valued which meant we had to convince the lender to increase LTV from 65-70%

With all these issues taken into account we were able to offer the following solution for our client.

Borrowing - £1,070,000 (70% LTV)

Interest only mortgage

Interest rate – 2.1% Over Base Rate

Given the international and all other complexities this was a great outcome for our client and it allowed them to purchase their first property in the UK in the most cost effective way possible. The solution delivered the following.

-         A saving of £85,000 in interest over the 5 years when compared to existing offer

-         A monthly cashflow saving of £1,400 to new offer and £3,000 to existing mortgage.

-         An extra £100,000 was released in cash to allow the client comfort of cash holdings

This solution was delivered due to the extensive network Mesa Financial has with private banks.  

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