The Client: An experienced landlord with eight buy to let properties owned under his SPV Limited Company. His income came from a modest salary and rental income from his portfolio.
The Property: A three-bedroomed semi-detached house, situated in a suburban area on the outskirts of a city in the South of England.
The Finance: The client recently refurbished the property ready to be let. He required a buy to let mortgage in order to pay off the bridging loan he’d taken out for the works.
The Challenge: The deal itself was reasonably straight forward, but the client’s income structure restricted the lenders available. We needed to source a lender who would allow for the borrower’s salaried income to be significantly lower than the standard £20-25,000, as the majority of our client’s earnings came from his buy to let portfolio.
The refurbishment works completed by the client had increased the value of the property above the original purchase price. To maintain a 75% LTV, the client wanted to split some of the land from the title deeds, reducing the overall value. We needed a lender to be comfortable with this and for their surveyor to agree the new valuation.
The Solution: With whole of market access and a lot of experience sourcing buy to let mortgages for clients with complex income streams, we were able to shortlist a number of lenders that would accept our client. From that shortlist, we assessed which buy to let mortgages would be the most suitable for his property investment needs and submitted the application. The lender’s surveyor agreed with the new valuation due to the reduced plot boundary and everything went through to completion seamlessly. Here are the details:
Property value: £400,000
Loan amount: £300,000
Rate: 3.43%, 5 year fixed
Term: 25 years, interest-only
Mortgage payment: £905
Lender arrangement fee: 2% (£6,000)
Rental income: £ 1,500
Application: SPV Limited Company
24th March 2020