Teacher funds second buy to let via SPV Ltd Co

The client is a teacher in the private education sector earning a salary in excess of £37k pa.

He also receives an income from letting out his former home - the school in which he teaches provides him with inexpensive residential accommodation.

At the beginning of 2015, the client raised finance on his home to use as a deposit for a buy to let.

Unfortunately the purchase fell through due to the vendor pulling out at the last moment. Having found a new property, a 3-bed terraced house in Oxfordshire, the client was ready to proceed with his mortgage application with a specialist lender which he was making using an SPV limited company.

The lender sanctioned the loan very quickly following a valuation of the new property and reassessment of his home.

Here are the details:

Property value: £236,000

Loan amount: £170,182

LTV: 72%

Rate: Bank Rate + 2.99% (floor limit of 3.49% applies)

Term: 25 years interest only

Borrower: SPV Ltd Company

Mortgage payment: £499.89 pcm

Lender arrangement fee: 1.25% of which 1% can be added to the loan account

Rental income: £975 pcm

Gross yield: 5% pa

Consultant: Andy Elley, 01732 471644