We were contacted by a broker who was looking to place a complex deal on behalf of his clients.

The clients are two brothers who were looking to borrow through a trust, which had been set up by their father.

Both brothers are in full-time employment, one working for an insurance firm and the other for one of the London Borough Councils.

The clients were looking to remortgage a mid-terraced 3-bed Victorian property, which had previously been owned by their father.

Their father had chosen to move to a smaller home due to his age and transferred the ownership of the house to his sons by setting up a trust.

Before the property could be let it was in need of some refurbishment works to bring it up to modern standards - which turned out to be rather costly.

To recover the costs they had spent on modernising the property they had decided to remortgage it.

There are a limited number of lenders who will consider lending to trusts, which is why the broker approached us for help.

Luckily we were able to source an appropriate lender and raise the capital required.

Property value: £350,000

Loan amount: £75,000

LTV: 21%

Rate: BBR + 3.49% tracker

Term: 10 years interest only

Mortgage payment: £249 pcm

Rental income: £1,350 pcm

Gross yield: 4.63% pa

Lender arrangement fee: £1,200   

Consultant: Gareth Richards

Consultant tel: 07528 377115