Remortgage for Professional Landlord with 3 CCJs

The Client: A professional landlord with more than 15 years of experience. His 6-property portfolio mostly consists of 2 or 3-bedroom apartments in prime locations around South East London.

The Finance: The client's current mortgage deal was reaching the end of term and he needed to remortgage onto a new rate. He also wished to use this opportunity to release some capital with which to make a new purchase shortly after.

The Challenge: Unfortunately for the client a turbulent divorce, during which his finances were both disputed and disrupted, had resulted in 3 County Court Judgments (CCJs). The CCJs had significantly impacted his credit rating and was making it difficult for him to find suitable finance, at a reasonable price.

The Solution: Having spent time talking to the client and with a thorough understanding of the context of his previous financial issues which resulted in the CCJs, we were able to approach a lender to put across the client’s case on an individual basis. Based on what we were able to tell them about the background, together with the fact that in the 3 years since the divorce things had returned to normal, the lender was willing to accept and offer a reasonable rate. Here are the details:

Property Details

Property value: £500,000

Loan amount: £312,000

LTV: 62%

Rate: 3.49%

Term: 5-year fixed, interest-only

Mortgage payment: £926 per calendar month

Lender arrangement fee: 2% added to loan (£6,240)

Rental income: £2,100per calendar month

Gross yield: 5.04% pa

SPV / Trading Ltd Co? Individual

Consultant: Chris Longhurst, 01732 471607 

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If you would like to discuss any of the above points or have any questions around the matter, please feel free to contact me on my direct dial 01732 471607 or you can email me: chrisl@mortgagesforbusiness.co.uk

26th November 2019