Affordability calculation key to home-buyer mortgage for landlords

We were approached by longstanding clients, a married couple, to help them find a home-buyer mortgage to buy a four-bed house with large garden in Nottinghamshire.

Both husband and wife work full-time in the medical sector and have saved a deposit of 20% of the purchase price. They also own three buy to let properties.

This scenario meant we needed to approach a lender that would not include the buy to let property in the affordability calculation, as this would have reduced the amount the couple could borrow.

We discussed a number of possible options and the clients chose the following deal from a popular lender.

Property value: £500,000

Loan amount: £400,000

LTV: 80%

Rate: 2.04% 3 year fixed

Term: 25 years capital and interest

Lender arrangement fee: £995

Mortgage payment: £1,707 pcm

Consultant: Andy McOwat, 01625 416396