Couple raise capital on 10th floor flat to acquire first BTL

The clients are a married couple who live in a flat on the 10th floor of a high rise block in a large Yorkshire city.

They were looking to acquire their first rental property and needed to raise the deposit by remortgaging the flat which they own outright.

To keep their monthly outgoings to a minimum the couple were hoping to get the mortgage on interest only terms; their exit strategy being to sell the flat at the end of the term and buy something smaller and cheaper to live in.

The husband is a retired public sector worker in his 60s with both a state and private pension income and the wife is in full time employment.

The combination of all of these factors meant that the choice of lender was somewhat restricted; however, after some negotiation we agreed a deal with a lender which offered the following terms.

In the couple’s favour the loan to value was relatively small which really helped to clinch the deal.

Property value: £500,000

Loan amount: £81,000

LTV: 16%

Rate: 2% 2 year fixed

Term: 14 years interest only

Lender arrangement fee: Nil

Mortgage payment: £135 pcm

Consultant: Andy McOwat, 01625 416396


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