We were approached by an accountant from South East London looking to refinance her sole rental property, a 7-bed detached house in North London.
There were three main reasons for the refinance:
1) To capital raise so that she could purchase another buy to let property
2) To save on monthly payments
3) For protection from future interest rate rises by locking in for five years
Due to the property type we knew we would have to take this case to one of the specialist lenders because the majority of lenders will not accept such a large house on a single freehold title.
The lender offered a competitive five year fixed rate which would save the client just over £400 a month. The remortgage also allowed the client to raise £50k to use as the deposit on a further buy to let purchase. Here are the details of the deal:
Property value: £750,000
Loan amount: £410,000
Rate: 3.99% 5 year fixed
Term: 25 years interest only
RTI: 145% @ 3.99%
Lender arrangement fee: 2% (£8,200)
Mortgage payment: £1,363 pcm
Original mortgage payment: £1,767 pcm
Rental income: £2,250 pcm
Gross yield: 3.6% pa
Consultant: Nick Helm, 01732 471607
This is just one example of how we have helped secure finance for a client, if you have a similar scenario or something you'd like us to look at please get in contact with us on 0345 345 6788 or contact me directly at firstname.lastname@example.org.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
3rd January 2017