Portfolio landlords refinance multi-unit

Written by Andy McOwat

The clients: A couple in Lancashire who have a portfolio of six buy to let properties, all held within their SPV limited company. The couple are both self-employed and all their income is generated from rental income.

The property: The couple wanted to refinance a terraced house, which had been converted in the 1990s, into two self-contained flats, each currently let out for £350 pcm.

The finance: Looking to remortgage to 75% loan to value which would allow them to raise capital to expand their portfolios, we knew we would have to take the case to a specialist lender because of the combination of factors:

Portfolio landlords
Relatively low property price and loan required
Multi-unit
Income solely from rent

The application: We submitted the case and a valuation was instructed. Happy with the property and the applicants, the lender issued a formal mortgage offer quickly and the case completed without fuss, leaving our clients free to find their next investment.

Property Details

Property value: £80,000

Loan amount: £60,000 (75% LTV)

Rate: 3.95% 5 year fixed

Term: 20 years interest only

Mortgage payment: £201 pcm

Rent: £700 pcm

Lender arrangement fee: 1% of the loan amount

Gross yield: 10.5% pa

Consultant: Andy McOwat, 01625 416 396

View more BTL Case Studies here

Submit an enquiry

Start and online chat