Why flexibility with your lender is so important in an uncertain market?
What do I mean by FLEXIBILITY?
Most lenders will tie you into a product with early repayment charges if you leave it.
The only alternative would be a tracker rate, but they are rare and expensive. And don’t offer you much certainty with the base rate on the move currently!
So, how can you get the flexibility to refinance when you need to??
Why would I need flexibility??
With an uncertain market, would you like the option to refinance and pull some more money out at a point that suits the market rather than a fixed date?
Do you want to do some work on the property, but not yet so you don’t want to put it on a bridge yet?
Is your property tenanted so you can’t complete work until some point in the future?
How does it work?
We have a lender who will allow you to refinance with them at any point and they will waive the early repayment charges.
They will offer a new product, with a reduced arrangement fee and legal, but a new valuation (the one thing you need!)
This allows you true flexibility when you choose to refinance, and you can move to and from a bridge to carry out work at a much lower cost.
As an example…
A client bought a property to convert to a 6-bedroom HMO with a bridge (before they knew about us!)
They refinanced to a term mortgage with a yield-based valuation in December 2020 when the market was so uncertain and valuations weren’t the best! The value was £570,000 (in Bath)
They are currently refinancing now that valuations are more positive and we have just got the new figure of £695,000.
We lent 75% of both figures, so that’s over £90,000 released for another project!