In the face of the economic backdrop, remortgage requests are in high demand, as investors capitalise on the low mortgage rates available. The Bank of England announced a drop in its base rate to 0.1%, precipitated by the Corona pandemic. The intention behind this is to stimulate investments and spending. Our client shrewdly decided to take advantage of this by remortgaging their UK property.
Our ability to resolve sophisticated mortgage arrangements underpins what Enness Global stands for. Our reputation for unrefuted mortgage management precedes us. With offices located globally, our brokers are adept at navigating an esoteric lending circle. In this case study, we reveal how our brokers, with a myriad of international lenders, helped to unlock preferential property terms.
Our clients primary base is in Monaco. We were commissioned to remortgage their buy-to-let London property in Chelsea. Initially, the loan was taken out at 3%, a relatively high rate. Our client employed our services to negotiate a better fee, thus preserving their capital.
The client also requested for a more flexible mortgage arrangement. With this in mind, we recommended an interest-free mortgage arrangement. Ultimately, this type of mortgage provides more flexibility because it allows capital to be deployed elsewhere. Another consideration is that debt depreciates over the long-term period because of inflation. Meanwhile, the property will retain capital growth. Thereby this type of mortgage makes sense from a long-term planning perspective. We knew that the client had a robust financial profile and the ability to repay the mortgage under these preferential terms.
The property was held in a Jersey limited company, narrowing the lending pool available. Most banks would not permit lending to properties held under a different jurisdiction. Enness benefited from the strong relationships on the island of Jersey, where we have an office. We were able to utilise local connections that we have fostered over the years. A lender with a strong presence in Jersey mortgage market felt comfortable refinancing the loan. They offered a desirable interest rate, particularly considering the intricate setup. Furthermore, the lender negotiated down their arrangement fee. The final conditions were agreed as follows:
Our client was overjoyed with the final mortgage arrangement terms, which made a significant impact on the financial health of the asset long-term.
It is an opportune time to take advantage of the current lending market and leverage the ultra-low mortgage rates available. Negotiate a better mortgage rate, or get help scoping out which terms align with your requirements. Our core work is contingent on working with niche lenders, which extends to over 300 worldwide. Contact one of our experts for an initial consultation to find out how we can help you.