A self-employed electrician and part-time landlord contacted us looking to release some equity in one of his buy to let properties.
The property in question is a 3-bed terraced house in Exeter. The electrician had recently carried out some light refurbishment work on the property, which had resulted in a slight increase in the property’s value.
This increase meant that he had lowered the loan to value, allowing him to quickly transfer onto a better rate with the same lender. Once the product transfer had been made he planned to use the extra funds to purchase a further buy to let property.
Here are the details of the deal:
Property value: £250,000
Loan amount: £150,000
Loan to value: 60%
Rate: 1.94% 2 year discounted tracker
Term: 25 years interest only
Mortgage payment: £243 pcm
Rental income: £800 pcm
Gross yield: 3.8% pa
Lender arrangement fee: £1,995
Consultant Mortgage Broker: Gavin Elley