This weeks case study highlights how Alexander Hall helped a client raise money against his residence to fund property refurbishment.
Our clients' challenge
Our client wished to raise money against his current residence for property refurbishment and to build an extension. He was also considering future property investment purchases. He had savings to cover the refurbishment, though felt investment opportunities would be limited with funds left over.
He was currently on a variable rate of over 4% with his existing lender. He had enquired with them about raising funds to add to his savings pot but their affordability rules proved restrictive.
Alexander Hall's solution
We sourced a lender who could offer the client additional borrowing on a tracker product which carried no early repayment charges. This meant that once the client had completed the refurbishment works on the property (which significantly enhanced its value) we would be able to look at the option of securing a new product on even more competitive terms, without incurring a repayment charge.
We were advising our client during an unprecedented week in which the Bank of England had reduced the base interest rate to 0.1% (having only dropped it from 0.75% to 0.25% the week prior). Tracker products in particular are incredibly volatile during these times, with lenders re-pricing by the day. We were delighted to secure our client a market leading rate at 0.99%, hours before it was withdrawn, with funds which would not only cover the refurbishment costs but also facilitate future investment purchases. Our client was of course delighted and is already prospecting new investment opportunities!
