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 value: £580,000 (down-valued to £328,000)
Loan amount: £140,000
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
28th March 2017