Interest only terms on home-buyer mortgage for landlord

Interest only terms on home-buyer mortgage for landlord

08.08.17 | Written by: Beckie Pepperrell

A longstanding client approached us for help in securing a mortgage to buy a new home. The client is a full-time landlord with a portfolio of 15 properties. He was looking to move from Bristol to London to be closer to family and friends. Having sold his Bristol home, he was hoping to buy a 2-bed flat in Battersea but because of London prices was hoping to get interest-only terms to lessen his monthly mortgage payments.

Although there are lenders which will consider applicants with these circumstances, the options available are somewhat restricted. The lender we approached not only agreed terms, the deal went through without a hitch and completion is due in a few days – exactly one month from the client receiving a formal mortgage offer.

Here are the details:

Property value: £825,000

Loan amount: £168,750

LTV: 75%

Rate: 1.42% 2 year fixed

Term: 23 years interest only

Lender arrangement fee: £999

Mortgage payment: £732 pcm

Consultant: Beckie Pepperrell, 01732 471602    

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.