We were approached by a married couple – both experienced landlords with a portfolio of four rental properties held in their personal names.
The clients were looking to remortgage one of their existing buy to let properties to raise capital for further investment, but wanted to ensure their monthly payments did not jump up too drastically.
The property they were looking to remortgage is a student-let HMO located in Hove.
The choice of finance is somewhat restricted with this type of deal as fewer lenders accept applications for HMOs let to students, especially when they require a Local Authority licence.
Fortunately we found a lender which offered a competitive rate with the additional benefit of free legals and a free valuation.
The clients accepted the following deal, which meant they would only be paying an extra £50 per month.
Property value: £365,000
Loan amount: £215,000
Rate: 3.24% 3 year fixed
Term: 10 years interest only
Monthly payment: £580 pcm
Lender arrangement fee: £995
Rental income: £1,450 pcm
Gross yield: 4.76% pa
Consultant: Paul Martins, 01732 471616