Originally, our existing client purchased an investment property with a loan to value ratio of 90% (paying lenders mortgage insurance at the time the property was purchased). The loan was also interest only. When combined, these three aspects (investment purpose, the fact the loan was mortgage insured & the interest only repayments) pushed the interest rate up.
Through reviewing the loan and the value of the property periodically, we determined that the loan to valuation ratio had dropped substantially over two years since the property was purchased. Our client has then refinanced and received a better deal on the rate (reducing the actual rate by circa 25% as a result).
Please give me a call or send me an email if you would like your lending reviewed on an obligation and fee-free basis.
Written by Tom Morison