Does a change in job mean a higher mortgage interest rate?
The situation?
I was recently approached by a client who was looking to remortgage to a more cost effective interest rate. We explored the rates available with their current lender, but found they were not as competitive as what was available by expanding the search. At the time, the client was looking to borrow just over £1m against their property valued at £1.6m.
This particular client is a partner in a law firm. When we first spoke, they were on gardening leave because they were moving to a new job but it had not yet started. They did have a signed contract in place, but most lenders would not consider the application until the start date.
The solution?
This application was classed as a higher value loan, which therefore required additional facility amendments. Knowing this, I was able to speak to some key contacts I have in the large loan teams at different lenders. After exploring the market, I was keen to secure the best offering for the client.
Following further discussion with key relationship partners, I secured a market leading fixed rate mortgage at a time when rates were unpredictable. At a 66% Loan to Value (LTV), I was able to secure just over 4% locking it in for 5 years, which was competitive at the time of application.
The client was really pleased as they were concerned that a change of employer would mean that they might receive a less competitive rate with their current lender. However, with the help of LDN Private Clients the client was over the moon!