Case Study: Securing the most cost-effective mortgage in an ever-changing market

by Adam Tovey – Director | Independent Mortgage & Protection Adviser @ Prism Mortgage & Protection Advice

In this case study, I explain how I assisted busy professional parents – concerned about rising and ever-changing mortgage rates: 

Customer Background:

My customers are cash-rich, time-poor busy professional parents who had relied on my services for many years.  

We picked up around six months in advance of the expiry of their current mortgage terms.  They were conscious of press coverage around rising mortgage rates, which led to a certain amount of apprehension about reviewing their mortgage this time around. 

Customer Objective & The Challenges:

My customer’s had three primary objectives: 

  1. To secure the most cost-effective mortgage terms across the whole of the market as early as possible – to protect themselves against the possibility of market increases – while also raising money for home improvements. 
  1. Their circumstances had changed considerably since we last met.  They were keen to explore their options to protect each other and their family should either of them die or suffer an accident or illness that would mean they would be without one of their substantial incomes. 
  1. With time constraints a fundamental challenge, my customers wanted a modern approach that supported their busy lifestyle. 
The Solution #1 – Remortgage, Raising Money for Home Improvements 

Their existing mortgage lender were quoting unattractive offers, so we set to exploring the alternatives. 

Understanding the changeable nature of the market, I secured the most cost-effective and suitable deal immediately and months in advance of their current rate’s expiry.  We always adopt this pre-emptive strategy to shield our customers from the possibility of rates increasing.  Why?  It’s possible to cancel a Mortgage Offer and replace the product if a more cost-effective option is released.  Can we ask a lender to book that better looking deal from two months ago that they’ve now withdrawn?  No chance! 

Given our pre-emptive strategy, we always keep on top of market movements after we secure a Mortgage Offer.  In January, some lenders reduced rates.  We were informed of the forthcoming changes by the Area Manager of the Lender in question.  My customers were now eligible for a product with an interest rate over 1% lower than previously agreed.   

My customer’s circumstances had not changed, so I swiftly cancelled the initial offer and switched to the new product.  My customers will save over £6,500.00 over the 5-year fixed-rate period. 

Having an expert with access to the whole of the market at your side can really help your pocket! 

The Solution #2 – Protecting Each Other & Their Family

My customers wanted to ensure that their mortgage could be repaid in full if one of them passed away.  This would mean the survivor and the children could remain in their home without having to pay the monthly mortgage payments on their own.  They were also mindful that their circumstances would change dramatically if one of them became ill or had an accident, which resulted in their being unable to work – meaning the loss of one of their incomes. 

The solutions to these needs are Life Insurance and Income Protection.  I reviewed the options across the whole of the market.  My customers had arranged their current Income Protection policy via a Corporate Mortgage Brokerage with access to only one insurer some years previously.  Staggeringly, though my customers were a number of years older, I was able to secure Life Insurance and Income Protection that far exceeded their current level of protection, at a similar cost.  Here are the highlights: 

  • The monthly income: 

The new policy would pay my customers a monthly sum nearly four times more than would their current policy. 

  • How quickly would they start receiving the monthly income? 

The new policy would pay my customers the first of their monthly payments 6 months sooner than would their current policy. 

  • How long would they receive the monthly sum for? 

The new policy would pay my customers the monthly sum until their expected retirement age – 5 years longer than would their current policy. 

Having an expert with access to the whole of the market at your side can mean that this type of invaluable protection is obtainable without a crazy price tag. 

The Solution #3 – Expert Advice, Digitally Delivered

We embrace and harness modern technology to offer a lean and progressive way of doing things –  video call consultations, group instant messaging, electronic documentation.  My customers were particularly delighted with the ease of our streamlined processes that have been built to support busy lifestyles.  

The Outcome:

Our proactive approach had significant benefits for our clients. 

  1. I was able secure the most cost-effective mortgage terms across the whole of the market – protecting my customers against the possibility of rising rates – while simultaneously raising money for home improvements. By working closely with Mortgage Lenders, I was able to take advantage of rate reductions after the original Mortgage Offer was issued.  Our customers will save more than £6,500.00 over the 5-year fixed-rate period. 
  1. My thorough review of the Financial Protection market allowed me to secure Life Insurance and significantly enhanced Income Protection, protecting my customers and their family, while providing invaluable peace of mind. 
  1. Our efficient, paperless and seamless digital process supported my customer’s busy lifestyle while being respectful to our planet. 
Conclusion:

We’re driven by the mutual goal of building a community of informed, empowered customers. Customers who value the journey, as well as the end result. 

With the benefit of decades of experience, a vast network of industry relationships, proactive market analysis and strategic planning, we provide advice that addresses the unique needs and circumstances of each of our customers – now and at every point they need us throughout the years. 

Book an appointment to talk with us if you want to explore your options. 

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. 

Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority. A fee may be charged for mortgage advice.

The exact amount will depend on your circumstance.