The client is a solicitor who also personally owns 18 rental properties.
In 2015 he purchased a two-bed terraced house in Greater Manchester for £40,000.
The property was bought with a bridging loan because it needed refurbishing before it could be let.
Now, six months on, the house is let to a family and is worth considerably more than he spent on purchasing and refurbishment.
Keen to refinance onto a more cost-effective product and raise capital to expand his portfolio further, the client approached us for help in sourcing suitable funds.
Despite considerable income, the client opted for finance in his personal name rather than a limited company vehicle because it best suited his purposes.
After presenting several options, the client chose a two-year fixed rate with free legal work and a free valuation from a lender with which he already has a number of buy to let mortgages.
Because the client was already well-known to the lender, the application was processed quickly and without a hitch.
Here are the details of the deal.
Property value: £80,000
Loan amount: £60,000
Rate: 3.39% 2 year fixed
Term: 25 years interest only
Lender arrangement fee: £995
Mortgage payment: £204 pcm
Rental income: £475 pcm
Gross yield: 7.1% pa
Consultant: Andy McOwat, 01625 416396