Landlord splits portfolio mortgage into 4
The client: A full-time landlord with five rental properties all held on one loan facility in her personal name.
The properties: All located in West London, the portfolio consists of 2 x three-bed terraced houses, 2 x two-bed and 1 x 1-bed flat.
The finance: The client was hoping to repay the balance on one of the properties using the capital in her portfolio and split out the remaining four into separate loan facilities. She was looking to borrow via her newly created SPV Ltd Co. Wanting protection from a future rate rise, the client had requested five year fixed rates.
The application process: We approached the intermediary arm of a well-known high-street bank with all four deals. We worked closely with the client to complete the application and collate the supporting documentation before submission.
Within three weeks of application all four mortgage offers were received. The table below shows how the deals were structured.
Property Details
| Property 1 | Property 2 | Property 3 | Property 4 | |
| Property value | £600,000 | £560,000 | £480,000 | £480,000 |
| Loan amount | £349,000 | £270,000 | £249,000 | £240,000 |
| Rate | 2.64% 5 year fixed | 2.09% 5 year fixed | 2.64% 5 year fixed | 2.09% 5 year fixed |
| Term | 25 years interest only | |||
| Arrangement fee | £1,995 added to loan | |||
| Mortgage payment | £1,558 pcm | £1,000 pcm | £1,110 pcm | £850 pcm |
| Rental income | £2,655 pcm | £1,625 pcm | £1,500 pcm | £1,625 pcm |
| Gross yield | 5.3% pa | 3.5% pa | 2.8% pa | 4.1% pa |
30th July 2018
