We were approached by a married couple who were looking to remortgage one of their rental properties to raise capital for a further buy to let purchase.
The property in question is a two-bed bungalow located in Merseyside, which had only been in their possession for four months at the time of contacting Mortgages for Business.
There were three main challenges with this enquiry:
• A lot of lenders will not remortgage properties that have been owned for less than six months
• The couple had already made their next buy to let purchase, which meant they needed the funds to come through in a tight time scale
• They were looking for a loan to value of 80% - most buy to let options are available at 75% and under
We sourced finance from an intermediary only lender which was happy to accept the deal at a loan to value of 78%.
An offer was produced within five days. As an added bonus for the clients the lender did not charge an arrangement fee.
Property value: £155,000
Loan amount: £121,121
Rate: 4.5% 3 year fixed
Term: 25 years interest only
Borrower: Joint application in personal names
Lender arrangement fee: Nil
Mortgage payment: £450 pcm
Rental income: £675 pcm
Gross yield: 5.2% pa
Consultant: Gavin Elley, 01625 416398