Full-time landlord with hard to prove income raises capital on London flat

The client is a full-time landlord with a large portfolio of more than 20 rental properties.

In order to expand his portfolio, he was looking to raise finance on an unencumbered 2-bed rental flat in East London.

Unfortunately his tax returns showed carried forward losses incurred through refurbishment costs.

In many lenders eyes this is viewed as having no perceptible rental income, so placing the case proved to be a challenge.

Fortunately, we found a lender that was happy to rely on a good credit history rather than a certain level of income. 

The credit report was supported with positive, well-conducted bank statements proving the actual rental income.

Here are the details of the deal:

Property value: £280,000

Loan amount: £210,000

Loan to value: 75%

Rate: 3.76% 2-year discounted LIBOR tracker

Term: 25 years interest only

Monthly mortgage payment: £672

Monthly rental income: £1,200

Annual gross yield: 5.14%

Lender arrangement fee: 2% of loan amount

Consultant: Chris Longhurst

Tel: 01732 471607

13th May 2015