Competitive Interest-Only Mortgage for New Portfolio Landlords
The Clients: Our clients were a husband and wife with three existing buy to let properties which they’d owned for several years.
The Property: A three-bedroom flat, located in the North East of England. With good transport connections to some large towns and cities, it was well situated for professional tenants looking to commute but live in a more rural location.
The Finance: Having saved up a 25% deposit, our clients required a 75% LTV buy to let mortgage to purchase the flat. They ideally wanted a 20-25-year interest-only term.
The Challenge: While seemingly straight forward, this purchase would add a fourth property to our clients’ buy to let portfolio. As not all buy to let lenders will accept portfolio landlords, we were restricted to the more specialist end of the market. Our clients were concerned that this would mean a higher mortgage interest rate, reducing the yield on their buy to let investment.
Furthermore, as our clients were approaching retirement age, we’d need to find a lender with criteria that would accommodate for their age at the end of a 20 or 25-year mortgage term. Again, this reduced the number of available lenders in our search.
The Solution: To secure the most suitable buy to let mortgage rate for our clients, we researched a variety of lenders that accepted portfolio landlords, and offered a high maximum borrower age on the criteria. Using our knowledge of the specialist buy to let market, we found a buy to let lender that accepts up to 10 background buy to let properties and have a maximum borrower age of 80. We were able to negotiate a 19-year interest-only mortgage term for our clients and secure a very competitive mortgage rate. Here are the details: