Part-time landlord uses product transfer to get better rate and release equity

A self-employed electrician and part-time landlord contacted us looking to release some equity in one of his buy to let properties.

The property in question is a 3-bed terraced house in Exeter. The electrician had recently carried out some light refurbishment work on the property, which had resulted in a slight increase in the property’s value.

This increase meant that he had lowered the loan to value, allowing him to quickly transfer onto a better rate with the same lender. Once the product transfer had been made he planned to use the extra funds to purchase a further buy to let property.

Here are the details of the deal:

Property value: £250,000

Loan amount: £150,000

Loan to value: 60%

Rate: 1.94% 2 year discounted tracker

Term: 25 years interest only

Mortgage payment: £243 pcm

Rental income: £800 pcm

Gross yield: 3.8% pa

Lender arrangement fee: £1,995

Consultant Mortgage Broker: Gavin Elley


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