We were approached by a civil servant and part-time landlord who was looking to buy a new home - a two-bed top floor flat in a popular Scottish city.
Finding a lender proved challenging because the client:
- Is 50 years old and wanted a mortgage term of 25 years - most lenders won’t allow borrowers to be over 65-70 at the end of a mortgage term.
- Also owns two mortgaged buy to let properties which many lenders don’t like because of the increased exposure to risk
After some research, we were able to place the case with a high street lender which would accept the client on a 23 year repayment term – not quite the number of years the client wanted but under the circumstances, he was happy with the term offered.
The lender was also happy with the client’s buy to let properties because they are self-financing, so weren’t included in the affordability calculation.
The client accepted the following rate.
Property value: £124,000
Loan amount: £81,000
Rate: 1.74% 2 year fixed
Term: 23 years repayment
Mortgage payment: £360 pcm
Lender arrangement fee: £995 added to loan
Consultant: Andy McOwat