Landlord with 100+ properties raises capital on coastal town house

Written by Jeni Browne

The client: An existing client of Mortgages for Business looking to raise capital to expand his portfolio. The client’s portfolio consists of 100+ properties in the south of the UK.

The property: The client was looking to refinance a three-bed terraced house, a stone’s throw away from the sea front in Kent.

The finance: Hoping to release £30k from the property for further investment, the client was looking to borrow at 75% loan to value via his SPV Ltd Co.

The application: Working closely with this client on a regular basis, we already had an up-to-date property portfolio spreadsheet along with supporting documentation. This really enabled us to speed up the process!

We submitted the case and within two weeks a formal mortgage offer was received. The funds were released without a hitch.

Here are the details of the deal:

Property Details

Property value: £290,000

Loan amount: £217,500

LTV: 75%

Rate: 3.99% 5 Year Fixed

Term: 15 Years Interest only

Lender arrangement fee: 2% added to the loan (£4,350)

Previous mortgage payment: £574 pcm

Mortgage payment: £714 pcm (after equity release of £30k)

Rental income: £1,000 pcm

Gross yield: 4.13% pa