Operational Risk Management
The Case Study
The client brief
This client came to tribe to avoid any hidden surprises that could impact their property investment portfolio.
They desired a proactive approach to risk management, anticipating potential issues and addressing them before they could negatively affect their financial performance.
Our team was committed to delivering a tailored solution, providing the client with the peace of mind that their investments were in capable hands and safeguarded against unforeseen challenges. The following was all achieved in the first month of engagement.
Before Tribe
Before engaging with Tribe Portfolio Management, the client faced a pending risk regarding their mortgage. Upon reviewing the due diligence documentation, it became evident that their mortgage was scheduled to switch from a fixed rate to a variable rate at 3.7% over base rate. With base rates having risen from 0.1% at the start of their loan to 4.25% at present, this situation posed a significant threat to the client's investment profitability and stability.
Our Approach
Our team worked diligently worked to identify appropriate mortgage brokers with the best possible rates and terms for the client. We handled the heavy lifting of the administrative work, gathering all the necessary documentation, and streamlining the entire process to provide the client with clear agreement-in-principle options for their approval or rejection.
By leveraging the existing mortgage's fine print, we were able to avoid an £83,084 early repayment charge. Ultimately, we secured a new rate with a different lender, saving the client £90,852 in annual payments. This approach ensured that the client could focus on making informed decisions without being burdened by the administrative complexities of the process.
Tribe Impact
Thanks to our strategic intervention, the client's investment portfolio has become more stable and profitable, saving an impressive £173,936 in potential expenses within the first calendar year. All of this was achieved at a modest initial cost of £446, showcasing the exceptional value our team at Tribe Portfolio Management brings to our clients.
It's important to note that this was just the first step in our ongoing operational risk management process. The minimal cost in the first two months highlights the efficiency of our service, which remains active and continues to add value for the client. As we work together, we will explore further opportunities to optimise and safeguard their portfolio, ensuring long-term success and stability.
The Financial Impact
-£446
tribe fees
£83k
ERC savings
£90.8k
annual repayment savings
£173.4k
direct financial impact
