BTL remortgage for low-earning, non-home-owning landlord

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

17th June 2015