The client is a recently retired accountant, with two rental properties in South East London.
He approached us looking to raise finance on one of his rental properties to purchase a new home outright.
The property he was looking to refinance is a one-bed maisonette in a block of three, with a relatively small mortgage and no tie-ins.
We found a lender that was happy to assist, however we knew we had to act quickly as we were aware that the stress test calculation was about to rise from 125% to 145% - meaning the amount the applicant would be able to borrow would decrease.
The process was held up slightly as the client had used shortened versions of his name on various supporting documentation which needed to be amended.
The client also needed to prove he had a right to reside in the UK as the reference number was missing from his latest passport.
Fortunately we managed to get all of the correct documentation over to the chosen lender in time and the following terms were accepted.
Property value: £315,000
Loan amount: £110,000
Rate: 2.19% 2 year fixed
Term: 28 years capital & interest
Borrower: Personal name
Lender arrangement fee: £1,995
Mortgage payment: £446 pcm
Rental income: £1,025 pcm
Gross yield: 8.2% pa
Consultant: Nick Helm, 01732 471608