Scenario:
Our client, a banker working in London, was looking to remortgage their residential property. The client had accumulated £600,000 in savings and wanted a solution that would make better use of this cash while keeping the mortgage payments as low as possible.
Challenges:
While the client had a relatively straightforward income, offset mortgages are less commonly available for larger loans, especially on an interest only basis. We needed to a find a lender offering a competitive rate while accommodating the loan size and the clients preference for flexibility.
Solution:
We sourced a lender with a well priced offset product that aligned with the client’s objectives. The product allowed the client to reduce their monthly interest cost significantly, while still maintaining access to their savings at any time. This structure provided both cost efficiency and flexibility, particularly as they were a higher rate tax payer.
Key figures:
Property value: £2.6 million
Loan amount: £900,000
Repayment type: Interest only
Product type: 2 year fixed
Interest rate: 4.41%