We were approached by a client who wished to refinance a property in order to raise capital for further investment.
The property is a 3-bed terraced house in Leicester which the client has owned for three years.
Our choice of lender was limited because the client earns a small salary from his retail job and he doesn’t own his own home. The majority of lenders prefer borrowers to earn at least £25k pa and own their own home.
However, because the client has a good credit history and has serviced his existing mortgage without fault, we found a lender that was willing to accept the case.
Here are the details of the deal.
Property value: £200,000
Loan amount: £150,000
Loan to value: 75%
Rate: 4.39% 5 year fixed
Term: 28 years capital and interest
Mortgage payment: £776 pcm
Rental income: £800 pcm
Gross yield: 4.8% pa
Lender arrangement fee: £995
Consultant: Chris Longhurst, 01732 471607