Residential remortgage with equity transfer

I recently helped a client remortgage her residential property, a flat based in North London, while also completing an equity transfer to her ex-partner.

Following my client’s split with her partner, the agreed decision was to divide £40,000 of equity from the property, meaning she would have to pay this amount to him.  

This undoubtedly created a lot of concern for my client, as not only would she now have to manage mortgage payments by herself, she also had to ensure she could afford the pay-out.

A key element to this case was reassuring my client we would find the best solution and everything would be ok, while ensuring I provided enough information to make her feel comfortable with proceeding.

Although my client had a successful career as a Marketing Consultant for a well-known, international company, some lenders saw the affordability side of my client’s circumstances as a problem, because she would need to increase her mortgage in order to pay her ex-partner, creating greater risk of being unable to afford the £309,000 mortgage alone.

Despite this, by taking both her current earnings and commission payments into account, I was able to source a cheaper product to suit her needs, which would also pay for any additional legal and valuation costs.

I managed to find a lender that was happy to accept my client’s case and provide a product that actually worked out cheaper on a monthly basis than the price of her existing mortgage.

This meant my client was able to save on her monthly repayments and most importantly, secure the peace of mind of being able to comfortably continue servicing the loan by herself.

OUR SOLUTION

I obtained a 2 year fixed repayment product with a rate of 1.55%. This offer was in place within just a few weeks and the legal side sorted within a month, proving an excellent result for my client and a weight off her shoulders.