Landlords remortgage home onto interest only terms

Landlords remortgage home onto interest only terms

27.04.18 | Written by: Charlie London

The Clients: A married couple from Cardiff returned to us looking to refinance their home onto interest only terms.

Both husband and wife are self-employed and run their own accountancy firm. As well as this, the couple own two rental properties.

The Property:
A 1970s detached three-bed family home close to Cardiff city centre.

The Finance:
Reaching the end of their initial mortgage term, the couple were keen to refinance. During the process the couple were hoping to release enough equity to support the expansion of their property portfolio.
The couple were specific in their mortgage requirements and had requested a five-year fixed rate on interest only terms.

The Application Process:
Working with the couple before we were able to complete the application form on their behalf. All the couple had to do was inform us of any recent changes and send through their latest bank statements and company accounts.

We took the case to an intermediary only lender which offers interest only terms on residential property. The lender issued a formal mortgage offer just one month after the application was submitted. The application is due to complete shortly.

Here are the details of the deal:

Property value: £245,000

Loan amount: £250,000

LTV: 59%

Rate: 3.99% fixed rate

Term: 25 years’ interest only

Lender arrangement fee: £1062

Mortgage payment: £500 pcm

Consultant: Charlie London, 01732 471604

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