Couple with 50+ rental properties raise capital on unencumbered house

Our clients are a married couple who own more than 50 rental properties in a popular Lancashire town.

In addition to earning income from the properties, the husband also receives pension from his teaching days.

In order to expand their portfolio they were looking to raise capital on a three-bed semi-detached house which they own outright.

Our challenge was to find a lender which accepts landlords with large portfolios and doesn't insist on rent as the borrower’s main source of income.

Having such a large portfolio, our clients had already used up their borrowing quotas with the likes of The Mortgage Works, BM Solutions and Virgin Money.

We approached a high street bank which is relatively new to the buy to let market. Not only does the bank accept landlords with large portfolios, it was offering some very competitive rates at 60% loan to value.

Here are the details of the product the clients chose:

Property value: £200,000

Loan amount: £120,000

LTV: 60%

Rate: 2.84% tracker for 2 years

Term: 12 years interest only

Mortgage payment: £284 pcm

Lender arrangement fee: Nil

Rental income: £650 pcm

Gross yield: 3.9% pa

Consultant: Gavin Elley

Consultant tel: 01625 416398

15th December 2015