A broker approached us on behalf of his ex-pat client who was looking to remortgage a rental property in London.
The client is a British ex-pat that has being living in Africa for more than three 3 years, working for a multinational, luxury travel company.
He wanted to remortgage his London rental property to repay his current lender and expand his portfolio with the purchase of a second buy to let property.
The flat he was looking to remortgage is on the fourth floor of a five-storey and the client’s broker was struggling to place the case because:
• The client is an ex-pat
• Flats in larger blocks are not accepted by all buy to let lenders
• The clients only credit footprint in the UK was his mortgage history with his current lender
Fortunately the client was able to provide pay slips and a work contract to prove his income.
We were then able to approach a peer to peer lender who was happy to lend on the case, as they did not deem it high risk.
Here are the details of the deal:
Property value: £320,000
Loan amount: £210,000
Rental income: £1,343 pcm
Rate: 5.10% fixed for 3 years
Term: 5 years interest only
Mortgage payments: £892 pcm
Gross yield: 5.04% pa
Lender arrangement fee: 2%
Completion date: April 2015
Consultant: Gareth Richards