Refinance of recently purchased property by landlords with minor adverse credit

Two brothers, one in his late 60’s and one in his early 70’s contacted us looking raise finance on a semi-detached house which they had bought for cash a month before from a relative.

This scenario meant that only a specialist lender would consider the case because:

• Both applicants were over 65 - restricting the number of lenders which will even consider the case

• They had only owned the property for a month – most lenders require borrowers to have owned the property for a minimum of six months

• One of the applicants had minor adverse credit from a phone bill dispute

• Many lenders tend to steer clear of properties that have been purchased recently via a related transaction

We took the case to the Axis Bank and after some negotiation and comprehensive background checks the underwriters agreed the following terms because of the brothers’ previous buy to let experience:

Property value
: £375,000

Loan amount: £280,000

LTV: 75%

Rate: 4.09% 5 years fixed

Term: 7 years capital and interest

Borrower: Joint application in personal names

Lender arrangement fee: 1.5% (£4,200)

Mortgage payment: £954 pcm

Rental income: £1,350 pcm

Gross yield: 4.3% pa

Consultant: Nick Helm, 01732 471608 


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