BTL mortgage for first-time landlord purchasing via newly established Ltd Co

We were approached by a would-be first time landlord looking to enter the buy to let market with the purchase his first rental property. The client is self-employed accountant on a respectable income.

He plans to build a property portfolio over the next ten years. Due to the impending changes to tax relief for landlords, he had set up an SPV limited company to make his first purchase.

The client needed finance to purchase a two-bed semi-detached house in Nottingham with the intention of letting it to families.

Managing to save a deposit of £80,000 the client only needed a lender to provide him with a loan to value of just over 50%.

After providing the client with numerous options he decided a two year loan tracker rate would suit best.

Here are the details of the deal:

Property value: £165,000

Loan amount: £85,000

LTV: 51%

Rate: 3.34% 2 Year Tracker

Term: 25 years interest only

Lender arrangement fee: 1.5% (£1275)

Borrower: SPV Ltd Co

Mortgage payment: £240 pcm

Rental income: £780 pcm

Gross yield: 5.7% pa

Consultant: Andy McOwat, 01625 416396

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

25th October 2016