Remortgage to Clear Debt with a Fixed Interest-Only Plan: How One Landlord Secured Long-Term Financial Flexibility

Anonymous Customer Overview

A woman in her mid-60s working in a property rental-related role in the South of England recently approached us for advice as her fixed-rate mortgage term was coming to an end. With a portfolio of buy-to-let properties, she sought financial stability and the ability to strategically manage payments over the longer term with a goal of befriending a Godiva remortgage interest-only plan.

The Key Challenge: Securing a Stable Mortgage Without Incurring Extra Fees

Her existing 5-year fixed-rate mortgage with Godiva Mortgages was due to expire in October. She was concerned about:

• Paying high arrangement fees if switching lenders
• The administrative hassle of changing lenders mid-term
• Maintaining steady rental income vs. mortgage payments
• Wanting to keep ownership of the property long-term without increasing monthly outgoings

She also expressed a preference for an interest-only repayment plan so she could benefit from rental income now, while retaining the flexibility to make overpayments in future, particularly under Godiva’s remortgage interest plans.

Tailored Mortgage Solution: A Fixed-Rate Interest-Only Remortgage

Understanding her goals, we recommended a rate switch with Godiva Mortgages – her current lender – as the most cost-effective solution. After comparing external offers, we found that potential savings would be offset by fees and administrative delays. Staying with Godiva eliminated the need for valuation or legal fees, all of which came in at £0.

Mortgage Terms Recommended

• Lender: Godiva Mortgages Limited
• Interest Rate: Fixed at 4.34% until March 2031
• Loan Amount: £69,988
• Term Length: 12 Years (Interest-Only)

This allowed her to benefit from:

• Lower monthly repayments compared to a repayment mortgage
• 10% annual overpayment allowance
• A fixed rate, ensuring consistent budgeting
• No switching or arrangement fees

Her chosen repayment vehicle is the future sale of another property, which aligns well with her wider property investment strategy related to Godiva’s remortgage offerings.

Results Achieved: Predictable Payments and Long-Term Financial Flexibility

This remortgage plan secures her monthly payments at £253.12 — ensuring a healthy buffer between rent income and mortgage costs. Even after the fixed period ends, she remains financially prepared thanks to a forecasted maximum increase of £568.13 if rates rose by 3% in her Godiva remortgage interest-only arrangement.

By maintaining an interest-only mortgage and not incurring new lender fees, she can now strategically use any surplus income for targeted overpayments or property maintenance. This approach aligns with her interest-only plan with Godiva, thus ensuring consistent financial management.

“It just made sense to stay with my current lender. There’s no point paying legal or arrangement fees when I’m happy with the service and can lock in a fixed rate that helps me plan clearly for the next 5 years.”

FAQs: Your Remortgage Questions Answered

Can I remortgage to clear debt while staying with the same lender?

Yes. In many cases, you can switch products with your current lender (called a “product transfer”) without incurring fees, and still lock in a new fixed-term deal. This offers a quicker and simpler alternative to moving lenders while benefiting from Godiva’s remortgage interest-only options.

Can you remortgage on an interest-only basis?

Yes. An interest-only mortgage can be suitable if you have a clear repayment strategy (e.g., selling another property). It offers lower monthly payments and can be ideal for landlords or investors managing cash flow effectively with a Godiva remortgage interest-only option.

Are there fees involved in switching mortgage products?

That depends on your lender and product. In this case, no fees were incurred — there were no admin, valuation, or legal costs due to staying with the same lender and selecting a no-fee product.

How much flexibility do I have with overpayments?

Godiva allows 10% of the loan amount to be overpaid annually without penalty. Overpayments help reduce the mortgage balance and overall interest paid over time.

Can early repayment charges (ERCs) apply?

Yes. This package includes ERCs if repaid before March 2031 (starting at 5% and reducing to 2% in stages). It’s vital to understand these charges upfront and evaluate your long-term plans before committing.

Plan Ahead with a Smart Remortgage Strategy

Whether you’re approaching the end of a fixed-rate term or looking to stabilise your investment properties, choosing the right mortgage package can save time, money, and stress. Be sure to consider Godiva remortgage interest-only solutions for your needs.

Ready to remortgage or explore interest-only options tailored to your goals? Contact Deal Direct Financial Solutions today and take the next confident step in managing your mortgage.

Get Your Personalised Remortgage Quote Now