The client: An existing client of MFB looking to expand his portfolio with the purchase of his eighth buy to let property. The client is a full-time landlord with no other source of income.
The property: A two-bed maisonette valued at £367.5k. The property is attractive to professionals working in the city - within walking distance to a main railway station.
The finance: The client had managed to save a large deposit of £172,500, so was looking for a loan to cover 55% of the purchase price. His only request was a five-year fixed rate which would protect him from interest rate rises in the near future.
The application process: We took the case to an intermediary only lender which is used to handling cases from full-time portfolio landlords. To support the application the client was asked to provide the lender with:
• Proof of ID and address
• An up-to-date property portfolio spreadsheet
• Tax returns & SA302s
Comfortable that the client was a good risk, the following terms were offered within 11 days of submitting the application.
Here are the terms:
Property value: £376,500
Loan amount: £204,000
Rate: 2.25% 5 year fixed rate
Term: 25 years’ interest only
Lender arrangement fee: £1,999
RTI calculation: 140% @ 5%
Mortgage payment: £380pcm
Rental income: £1,350pcm
Gross yield: 4.3% pa
Consultant: Charlie London, 01732 471604
6th June 2018