First Time Buyer First Time Landlord

First-Time Buyer, First-Time Landlord Added to Existing Buy to Let Mortgage

08.07.20 | Written by: Luke Worrell

The Clients: A professional couple, the husband owned a single buy to let property. 

The Property: A two-bedroom terraced house in Northern England with long term tenants. It was walking distance to the local train station and situated not far from a large city, making it a very desirable property.

The Finance: The clients buy to let property was up for remortgage, and they had decided to take the opportunity to add the wife to the mortgage deeds. 

The Challenge: The wife didn’t own any property as she was not on their residential mortgage either, technically making her a first-time buyer, first-time landlord. Some lenders view these applicants as higher risk and do not accept them, which limited our choice of lenders and products.

The Solution: Despite researching the criteria, the first lender we approached was not comfortable with the fact that the wife owned no property and would not accept an application. After continued research, we approached a second lender about the case that we were confident would be comfortable with the wife, a first-time buyer and first-time landlord, being added to the mortgage deeds. We explained the case directly to the lender, and they agreed they were comfortable with the addition of the wife. We were able to submit the application which received a formal offer less than a week later, despite the ongoing COVID disruption, much to the delight of our clients. Here are the details:

Property value: £85,000

Loan amount: £62,000

LTV: 73%

Rate: 2.19% 5-year fixed

Term: 25 years, interest-only

Mortgage payment:  £114.97 per calendar month

Lender arrangement fee: £995 paid upfront

Rental income: £450 per calendar month

Gross yield: 6.35% pa

Application: Individual

Consultant: Luke Worrell, 01732 471684 or 07814071895

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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