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Full-time landlords remortgage home to raise capital for further BTL investment

A married couple, both full-time landlords, approached us looking for help to refinance their home – a five-bed detached house in Stoke-on-Trent.

The couple planned to use the capital raised from the refinance to put down as a deposit on a further buy to let property.

The couple had spent the last year refurbishing their rental properties, which had resulted in a reduction in their total income. This meant we would need to source finance from a lender with a generous affordability calculation if we were to achieve the loan amount required.

We approached one of the high-street banks, which is currently offering very competitive terms. The bank agreed to lend and instructed a valuation.

Surprisingly, the property was down valued at £328,000, much lower than the £580,000 suggested by the client. Fortunately, with a low LTV of 24% required the bank was still happy to go ahead with the deal which went through without any additional hold-ups.

Property Details

Property value: £580,000 (down-valued to £328,000)

Loan amount: £140,000

LTV: 24%

Rate: 1.34% 2 year tracker

Term: 22 years’ capital and interest

Lender arrangement fee: £999

Mortgage payment: £617 pcm

Consultant: Andy McOwat, 01625 416396

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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in England and Wales No. 2502713.

Registered office:
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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

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