Consumer Buy to Let Mortgage in Three Days for First-Time Landlord

The Client: A first-time landlord, looking to remortgage her current residential property onto a buy to let loan. Having just moved in with her partner, our client was hoping to rent out her former home to generate some extra income.

The Property: A terraced cottage in an idyllic town on the outskirts of a city centre. The property promised to generate significant rental demand with shops close by and a strong local community.

The Finance: Our client was seeking finance to turn her current residential mortgage into a buy to let. She was also hoping to raise capital against the property for home improvements.

The Challenge: As our client had lived in the property, this was classed as a Consumer Buy to Let transaction. Not all lenders will accept Consumer Buy to Let applications, and combined with the fact our client was a first-time landlord, we were restricted with the number of lenders we could approach. Similarly, our client had minimal income coming in, as she had only recently started her own business. This made the case more complex to get to completion.

The Solution: Our knowledge of the specialist buy to let sector meant that we knew which lender to approach that would be able to accept Consumer buy to let applications from first-time landlords. By using this lender, we were also able to speed up the process for our client with an automated property valuation. As such, we received our client's mortgage offer in just three days. Here are the details:

Property Details

Property value: £285,000

Loan amount: £135,000        

LTV: 47%

Rate: 3.84%, fixed for two years

Term: 25 years, interest-only

Mortgage payment:  £430.62 per calendar month

Lender arrangement fee: None

Rental income: £1,000 per calendar month

Application: Individual

2nd November 2022