A father and son approached us looking to expand their property portfolio with the purchase of an ex-council flat in Glasgow.
The pair were looking to borrow via their SPV limited company, which had already been used to purchase six other investment properties.
Unfortunately, there are only a handful of lenders that will consider Scottish property, of which only a select few will lend to limited company applicants. Added to this the property was only valued at £72k, most lenders hold a minimum purchase price of £75k.
We took the case to an intermediary only lender; one we use regularly to place buy to let deals in Scotland. Happy with the location of the property and clients’ experience the following terms were offered:
Property value: £72,000
Loan amount: £54,675
Rate: 4.14% term tracker
Term: 10 years interest only
Mortgage payment: £188 pcm
Lender arrangement fee:1.5%
Rental income: £575 pcm
RTI: 125% @ 5.79%
Gross yield: 12% pa
Consultant: Andy McOwat, 01625 416396
20th June 2017