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
Rate: 2.09% 2 year fixed
Term: 18 years interest only
Lender arrangement fee: £999
Mortgage payment: £263 pcm
Consultant: Jeni Browne, 01732 471647