Mortgage for first-time landlord in just under a month

The client, an office manager living in London, approached us for help in funding his first investment property.

He had made an offer on a 2-bed former local authority flat in Greater London which had been accepted under the proviso that the sale went through within a month.

His parents had kindly given him enough money for a deposit of 60% loan to value, so our challenge was to find a lender that would accept first-time landlords, gifted deposits, ex-local authority flats and complete the mortgage application in a very short timescale.

After talking to a handful of lenders, we found one that could accommodate the client’s requirements.

The lender’s customer team gave excellent service and the application was processed from start to finish in under four weeks. Here are the details of the deal:

Property value: £625,000

Loan amount: £375,000

LTV: 60%

Product: 2.74% fixed for 2 years

Term: 25 years interest only

Rental income: £2,600 pcm

Gross yield: 5% pa

Mortgage payments: £856 pcm

Lender arrangement fee: £1,875

Consultant: Gary McKenna

Consultant tel: 01732 471652