The Challenge:

A British expatriate living in Denmark contacted Advantage FS after being misled by another mortgage broker. The client, seeking to refinance his Buy-to-Let (BTL) property in the UK on a like-for-like basis, was incorrectly informed that the desired loan amount wouldn’t be possible. Furthermore, the previous broker allegedly pushed a bridging loan as a solution, which wouldn’t have suited the client’s situation considering the lack of strong selling prospects for the property.

Advantage FS to the Rescue:

Within 15 minutes of our initial consultation, our adviser was able to identify a suitable solution for the client. Here’s what made the difference:

• Understanding buy to let rental income Affordability: The client needed a short term interest rate with 2 year early repayment charges. The challenge here is that, when the interest rate chosen is shorter than 5 years (such as a 2 year fixed or variable rate) most lenders add 2% to the payable rate to ‘stress test the mortgage’, which dramatically reduces the amount available based on the monthly rent received.. A lesser known piece of criteria is that when a client is not increasing the mortgage amount, certain lenders like Saffron Building Society use the payable rate (not the rate plus 2%) which leads to a much higher available mortgage than most competitors offer.
• Mortgage Expertise: In-depth knowledge of mortgage criteria is fundamental to Advantage FS’ approach, ensuring clients receive accurate and appropriate advice.
• Client-Centric Focus: Advantage FS prioritises the client’s needs above all else. There’s no pressure for unnecessary financial products, and the focus remains on finding the most suitable and ethical solutions.

The Outcome:

By prioritizing affordability calculations and in-depth mortgage knowledge, Advantage FS secured the refinancing solution the client needed. This demonstrates the stark difference a qualified and ethical mortgage broker can make for clients navigating the complexities of the mortgage market.

Industry Discussion:

This case study raises a concerning question: are there instances where clients receive subpar or misleading advice from other brokers? Advantage FS is keen to hear from fellow brokers about their experiences and how, together, the industry can ensure ethical and client-centred practices remain the norm.

Advantage FS: Your Trusted Mortgage Partner

This case highlights the importance of choosing a qualified and ethical mortgage broker. Advantage FS is committed to providing accurate advice, prioritising affordability, and finding the best solutions for its clients.

Contact Advantage FS today for a free consultation and take the first step towards owning your first home.