The client: An experienced property developer and part-time landlord approached us looking to raise capital for further investment.
The property: The client had decided to remortgage a three-bed student-let HMO in West London. The property is within walking distance to the local university and a short bus ride to the nearest station.
The finance: In total, the client was looking to borrow £325,000. At 74% loan to value, this would restrict the number of finance options available.
The application: We assessed the case and decided to take it to a semi-exclusive lender, which can only be accessed via a select panel of brokers. This particular lender is currently offering some great incentives including cashback and low arrangement fees.
We supplied the chosen lender with the landlord’s property portfolio spreadsheet along with the standard application form and proof of ID. To the client’s delight, an offer was made which included £250 cashback and NO arrangement fee!
Here are the details:
Property value: £440,000
Loan amount: £325,000
Rate: 3.60% 2 Year Fixed
Term: 25 years capital and interest
Lender arrangement fee: FREE + £250 cash back
Previous mortgage payment: £1,432 pcm
Mortgage payment: £1,648 pcm
Rental income: £2,200 pcm
Gross yield: 6% pa
Consultant: Charlie Potter, 01732 471648 or 07814072193
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14th August 2018