Mortgages for Business is committed to keeping both our staff and clients safe during the COVID-19 outbreak while maintaining the best service possible. Our teams are working from home from Wednesday 18th March, but don’t worry, you can contact us in the usual ways. To find out more about our business continuity plan, please click here.
To read our comprehensive FAQ guide on how the emergency interest rate reduction and Coronavirus outbreak could affect your mortgage, please click here.

Teacher funds second buy to let via SPV Ltd Co

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

Consultant

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

Get in contact with us: 0345 345 6788 or ...

Submit an enquiry
Arrange a call back