The case in brief
- Client: British National & Resident
- Property type: Mixed-use refinance
- Property value: £3.4 million
- Loan Amount: £2 million
- LTV: 88%
Mixing commercial interests with residential can cause issues when looking to secure a mortgage or refinance. Sourcing a lender who will offer a mortgage deal on a mixed-use property can be difficult, particularly if the client requires a high loan-to-value ratio combined with a competitive commercial mortgage interest rate. This was the case with our client, who needed our help to secure a remortgage deal and release further equity in her mixed-use property.
Our client
Our client was the owner of a £3.4 million manor house based in a rural location around 1 hour from London. Our client was not only a resident of the property, but also runs a successful nursery business from the same location. She was looking to release further equity in the property to make home improvements, whilst at the same time reducing her monthly payments.
The client’s situation was complicated because the property is regulated, combining her commercial interests with her domestic property. This is a scenario which many lenders will shy away from. To add an additional layer of complexity, our client was also looking for an extremely competitive mortgage loan-to-value ratio of 88% – something that would ordinarily be unachievable in the commercial world.
Our solution
We partnered with a mortgage lender who was comfortable in offering refinance to our client’s commercial and residential property. We also managed to negotiate a highly competitive mortgage rate, on a fixed term of 5 years, which in the current climate of rising interest rates was of great benefit to the client.
In addition to this, we were also able to negotiate the client’s preferred loan to value ratio of 88%, with a view to amortising this down to 75% over the 5 year term. The client was extremely satisfied with the outcome and now pays less per month than she did before. Ultimately, we increased our client’s mortgage by £1 million from a previous level of £2 million against a property value of £3.4 million.
This case study shows that even when a remortgage request seems unlikely, utilising our relationships and experience can produce beneficial results. Our close relationships with private lenders means that we can negotiate highly competitive mortgage terms that are unlikely to be achieved on the high street. You can learn more about our services or speak to a broker today.