Day One Remortgage of Ex-Council Flat Bought at Auction
The Client: An experienced landlord with three buy to let properties in and around the South-East.
The Property: With a city-centre location, this three-bedroom ex-council flat was well situated for anyone working nearby or with a small family.
The Finance: Our client had previously purchased the property at auction with short-term finance and now wanted to remortgage onto a standard buy to let product. Keeping monthly repayments down was important, so we’d need to research the most suitable rates.
The Challenge: The main challenges we encountered were to do with lender criteria. Having bought the property at auction less than six months ago, we’d need to find a lender that would offer a mortgage after such a short time. Furthermore, not all lenders are comfortable with ex-council properties as they’re worried about how easily they can be sold in the event of repossession.
Lastly, our client didn’t currently own his own home and lived in rented accommodation. We knew that this would be an issue for some lenders as they view applicants who own their own homes as lower risk.
The Solution: We set about researching multiple lender criteria to create a shortlist that would consider our client’s application. Due to the multiple complexities of this case, we were left with just a handful to choose from.
Once we knew which lenders had potential, we compared the various buy to let mortgages on offer to find the one most suitable for our client. Happy with our recommendation, we submitted the application and helped it through to completion. Here are the details: