We were contacted by a couple were looking to expand their buy to let portfolio by refinancing a property to raise capital for a deposit.
The property is a 2-bed flat in a small block in North London which the couple own in an SPV limited company.
Although fewer lenders offer finance to SPVs than to individuals, there are currently some quite competitive rates available for limited companies and we found a rate that suited the couple’s needs.
Here are the details:
Property value: £550,000
Loan amount: £300,000
Loan to value: 55%
Rate: Tracker at 3.85% (LIBOR + 3.25 for loan term)
Term: 25 years interest only
Mortgage payment: £963 pcm
Rental income: £2,000 pcm
Gross yield: 4.4% pa
Lender arrangement fee: 1% (£3,000)
Consultant mortgage broker: Gavin Richardson, 01732 471613
22nd September 2015