The client is a teacher in the private education sector earning a salary in excess of £37k pa.
He also receives an income from letting out his former home - the school in which he teaches provides him with inexpensive residential accommodation.
At the beginning of 2015, the client raised finance on his home to use as a deposit for a buy to let.
Unfortunately the purchase fell through due to the vendor pulling out at the last moment. Having found a new property, a 3-bed terraced house in Oxfordshire, the client was ready to proceed with his mortgage application with a specialist lender which he was making using an SPV limited company.
The lender sanctioned the loan very quickly following a valuation of the new property and reassessment of his home.
Here are the details:
Property value: £236,000
Loan amount: £170,182
LTV: 72%
Rate: Bank Rate + 2.99% (floor limit of 3.49% applies)
Term: 25 years interest only
Borrower: SPV Ltd Company
Mortgage payment: £499.89 pcm
Lender arrangement fee: 1.25% of which 1% can be added to the loan account
Rental income: £975 pcm
Gross yield: 5% pa
Consultant: Andy Elley, 01732 471644
