Landlords remortgage home to raise capital

We were approached by a married couple who are experienced landlords with a portfolio of five properties.

They were looking to remortgage their home, a five bed detached house in Devon, to raise £40,000 to expand their portfolio.

The clients’ income is largely derived from rent other than a small amount from the wife’s part-time job.

This restricted us to which lenders we could approach as many do not accept rent as the main source of income.

The clients were also hoping for an interest only deal which proved difficult because they earn less than 75,000 per year.

However, there were a handful of options available and after some discussion the clients chose the following deal, which increased their monthly outgoings by c£30 pcm.

Property value: £550,000

Loan amount: £150,000

LTV: 27%

Rate: 2.09% 2 year fixed 

Term: 18 years interest only

Lender arrangement fee: £999 

Mortgage payment: £263 pcm

Consultant: Jeni Browne, 01732 471647

15th March 2016