The Client: An experienced, full-time landlord with 3+ properties in her growing portfolio.
The Property: A 2-bedroom terraced property in close proximity to a town centre and railway station in South Yorkshire. The client had bought it in an un-lettable state to refurbish and let out.
The Finance: The client, having completed the refurbishment, wanted to pay off the bridging loan taken out at purchase to reimburse her costs and to raise some capital to purchase further buy to let properties for her portfolio.
The Application: The client had financed a number of other properties with us over the past 18 months, so we knew her well and had all the required documentation. She had refurbished the property to a good standard and the lender was happy with the value and rental assessment, requiring no additional checks. As with her previous investments, everything went quickly from offer to completion, resulting in another very happy client. Here are the details:
Property value: £80,000
Loan amount: £60,000
Rate: 2.89% fixed for 2 years
Term: 25 years, interest only
Mortgage payment: £146 per calendar month
Lender arrangement fee: 1% (£600) paid up front
Rental income: £500 per calendar month
Gross yield: 7.5% per annum
Consultant: Andy McOwat, 01625 416396
13th September 2019