We were approached by a couple looking to purchase their first buy to let property - a two-bed ex-local authority flat in Norwich.
The clients had recently set up an SPV limited company through which they were planning to make this and any subsequent purchases.
There were two main challenges with this case that would limit the number of finance options available.
- The clients are both first-time landlords
- The property is ex-local authority
The clients had also requested a 5-year fixed rate to protect themselves from the possibility of rate rises in the near future.
We approached a lender which we knew would be able to consider the case. A mortgage offer was received within 48 hours of submitting the application.
Here are the details of the deal:
Property value: £128,000
Loan amount: £96,000
Rate: 4.40% 5 year fixed
Term: 10 years interest only
Lender arrangement fee: 2% (£1,920)
Borrower: SPV Limited Company
Mortgage payment: £352 pcm
Rental income: £625 pcm
Gross yield: 5.9% pa
Consultant: Charlie London, 01732 471604
4th July 2017