BTL mortgage with no ERCs for landlord with irregular income

BTL mortgage with no ERCs for landlord with irregular income

25.07.17 | Written by: Charlie London

We were approached by a part-time landlord looking to purchase a four-bed bungalow in Maidenhead. As well as managing a small portfolio of rental properties, the client also owns a property development company.

Due to the nature of his business, the client’s income is highly irregular. For this reason, it was important we sourced finance from a lender which would be willing to underwrite using the client’s latest years self-employed income – the previous year had been very irregular due to new developments starting. Lenders will normally ask for a minimum of two years accounts.  

The client had also requested a product with no early repayment charges, as he wanted the flexibility to be able to repay the mortgage at any time without having to incur a penalty.

We took the case to a building society, which we knew would be able to offer the client a competitive rate without ERCs. An offer was received within a week of application.

Here are the details of the deal:

Property value: £530,000

Loan amount: £170,000

LTV: 32%

Rate: 1.59% term tracker

Term: 20 years interest only

Lender arrangement fee: £1,999

Mortgage payment: £228 pcm

Rental income: £1,300 pcm

Gross yield: 2.9% pa

Consultant: Charlie London, 01732 471 604

 

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