The clients are a married couple who, five years ago, purchased a 10-bed guest house in Norfolk. They carried out extensive refurbishments and today it trades extremely profitably and has a superb ranking on Trip Advisor.
To assist with the original purchase the couple took out a business mortgage over a 20 year term at a very high rate of interest. With nearly all of their income being swallowed up in loan repayments, they approached us to help them refinance onto a more favourable terms.
In particular they were looking for interest only terms which would help with cash flow. We found a lender who was willing to offer interest only for 10 years.
Now the clients intend to make further investments into the guest house and have surplus income which they intend to put aside either for investment into a buy to let property or a possible holiday let as an overflow to the guest house during the busy summer months.
Here are the details of the deal:
Property value: £400,000
Loan amount: £280,000
Rate: 6.25% over LIBOR
Term: 10 year interest only
Lender arrangement fee: £4,760
Completion date: March 2014
This is just one example of how I've helped a client secure finance. To see more of my case studies please visit my profile page. And if you have any funding requirements, please do not hesitate to contact me. My direct line and email address can be found below.