We were approached by a married couple who are experienced landlords.
They were looking to save money and lower their monthly mortgage payments by remortgaging two HMOs which had risen in value and would allow them to borrow at 65% LTV where rates are more keenly priced.
The HMOs are both located in Brighton and accommodate seven students each.
The landlords, who are both in their late sixties, wanted a mortgage term of 20+ years.
This meant that they didn't meet the criteria of some lenders which only allow borrowers up to the age of 75 at cessation of the mortgage.
We approached a lender which has an upper age limit of 90 and agreed the following terms, thus saving the couple £1,026 per month in mortgage payments.
Property 1
Property value: £525,000 each
Loan amount: £341,250 each
LTV: 65%
Rate: 3.14% Fixed for 2 years
Term: 24 years interest only
Mortgage payment: £893 pcm
Overall saving: £513 pcm
Lender arrangement fee: £1,995
Rental income: £3,185 pcm
Gross yield: 7.3% pa
Property 2
Property value: £525,000 each
Loan amount: £341,250 each
LTV: 65%
Rate: 3.14% Fixed for 2 years
Term: 24 years interest only
Mortgage payment: £893 pcm
Overall saving: £513 pcm
Lender arrangement fee: £1,995
Rental income: £3,337 pcm
Gross yield: 7.6% pa
Consultant: Nick Helm
Consultant tel: 01732 471608
