The Client: A self-employed consultant with ten buy-to-let properties, looking to add to her portfolio.
The Property: A detached four-bedroom family home; with stunning countryside surroundings and plenty of transport options to nearby towns, the house would be an ideal family home.
The Finance: Using retained company profits as a deposit, our client needed a 48% LTV buy to let mortgage to complete the property purchase.
The Challenge: Our client wanted to take advantage of the tax savings offered by the stamp duty holiday, and therefore needed to complete before 31st March 2021 (the original deadline). As she came to us in January, our first challenge was to find a lender that could complete in time!
Secondly, as our client was self-employed, we would have to source a lender comfortable with this and collect all the additional financial documentation to support the application.
The Solution: Using our extensive knowledge of the buy to let lender market and their processes, we were able to shortlist several that used manual underwriting processes for their applications. With faster and more experienced underwriters, these lenders would assess the case individually upon its merit.
Once we’d identified a lender with a competitive mortgage rate, we were able to submit a full packaged application. Within this was our client’s financial documentation evidencing her profitable consultancy business and extensive landlord experience. Comfortable with what we’d provided, the lender was happy to proceed.
To ensure the case met the approaching deadline, we arranged the initial meetings with the conveyancer while the application was processed. Doing this helped secure a quick mortgage offer, and the case completed within two months and in time for the original stamp duty deadline. Here are the details:
Property value: £457,500
Loan amount: £220,000
Rate: 3.14% five-year fixed
Term: 20 years, interest-only
Mortgage payment: £580 per calendar month
Lender arrangement fee: £1,195 added to the loan
Rental income: £1,600
Application: SPV Limited Company
Consultant: Rob Gurr, 01732 471673
2nd June 2021