80% LTV for semi-retired landlords

The clients: A married, semi-retired couple who owned half a dozen investment properties in their joint names. They had considered incorporating their properties into an SPV limited company; however, after taking professional tax advice, they had decided that given the costs involved they would leave the properties in their individual names.

The property: A high yielding, 2-bed terrace in East London let to city professionals. The couple received a generous rental income from the property due to its commuter connections and local amenities.

The finance: When their existing BTL mortgage was nearing the end of its term, the clients saw the opportunity to raise enough capital to repay the outstanding mortgage on their own home.

Although they needed to borrow 80% loan to value on the buy to let the clients preferred to have the borrowing against the investment property rather than their home.

This case called for a specialist lender as not all lenders accept landlords over the age of 60 or clients raising money to pay off their residential mortgage. Having worked with Mortgages for Business on several occasions the clients felt confident we would be able to find the right deal for them.

The application process: We collected the clients’ updated proof of income; proof of address and ID required for the application and offered a free portfolio review. We then approached a lender who accepted applicants over the age of 60 and allowed capital raising for debt consolidation.

This lender offered a competitive buy to let mortgage rate at 3.94%, with no arrangement fee and a refund of the property valuation fee.

The clients were delighted with the quick turnaround of just three weeks between submitting the application and receiving their mortgage offer. The case completed within one month of the mortgage offer.

Here are the details of the deal:

Property Details

Property value: £320,000

Loan amount: £256,000

LTV: 80%

Rate: 3.94% 5 year fixed

Term: 13 years interest only

Arrangement fee: 1.5%, £3,840 added to the loan

Mortgage payment: £851 pcm

Rental income: £1,400 pcm

Yield: 5.25% pa

Consultant Mortgage Broker: Chris Longhurst, 01732 471607

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25th June 2019