The client is a London-based teacher who also owns two buy to let properties – both unencumbered.
She had been trying to get a residential mortgage to buy a house to live in but didn’t have a big enough deposit for the property in question.
To increase her deposit, she approached us for help to release some of the equity in one of her rental properties – a house let to a family which generates £1,450 per month in rent.
We contacted a leading, mainstream buy to let lender which is currently offering some excellent rates.
Here are the details:
Property Value: £450,000
Rental income: £1,450 pcm
Loan amount: £270,000
Product: 2.99% 2 year fixed rate
Term: 25 years interest only
Lender arrangement fee: £995 added to loan
Mortgage payments: £673 pcm
Gross yield: 3.9% pa
Consultant: Paul Martins
Consultant tel: 01732 471616