Offer to completion in one week for capital raising on unencumbered buy to let

Offer to completion in one week for capital raising on unencumbered buy to let

31.05.17 | Written by: Andy McOwat

We were approached by an experienced landlord with a modest property portfolio looking refinance one of his rental properties – a two bed terraced house in Newcastle upon Tyne.

The client planned to use the capital raised to expand his portfolio with the purchase of a further buy to let property.

In addition to looking after his property portfolio, the client is also a self-employed mechanic.

With his eyes already set on another property, the client wanted the transaction to go through as quickly as possible. To help with this we asked that he provide us with following documentation to ensure that there would be no hold ups:

-       Completed application form

-       Proof of identification

-       Proof of residency

-       Copies of latest 3 months’ bank statements

-       Proof of income

-       A copy of the current tenancy agreement

Once received we sent the application over to an intermediary only lender and received an offer back the following week. The client accepted the terms with the added bonus of no valuation or legal fees and the case completed a week later. 

 

Property value: £160,000

Loan amount: £104,000

LTV: 65%

Rate: 1.69% term tracker

Term: 25 years interest only

Lender arrangement fee: £1,999

Borrower: Personal application

RTI: 140% @ 5.5%

Mortgage payment: £149 pcm

Rental income: £795 pcm

Gross yield: 6% pa

Consultant: Andy McOwat, 01625 416396

 

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.