Landlord remortgages home to fund buy to let purchase with her daughter

We were approached by a mother and daughter who were looking for finance to expand their joint property portfolio.

The mother is a solicitor and the daughter is currently on maternity leave from her full-time job.

They were hoping to remortgage the mother’s home to raise the necessary funds for a deposit on a buy to let purchase in London.

There were a few challenges when trying to find a suitable lender:

• The clients wanted a 10 year interest only term but the mother, the main applicant is 60 years old – most lenders offering interest only limit the maximum age to 65 years.

• The mother’s income showed strong profits for the past two years but not for the current year – we needed to find a lender which would be able to average the previous two years profit and not include the current year.

Even though these challenges meant that the number of lenders we could approach was restricted, we managed to source funding from a high street bank.

After some negotiation the bank agreed to a term of nine years (the maximum its policy would allow given the mother’s age) because the loan to value was so low.

Here are the details of the deal:

Property value: £2.75m

Loan amount: £372,260

LTV: 14%

Rate: 2.44% 5 year fixed

Term: 9 years interest only

Mortgage payment: £759 pcm

Lender arrangement fee: £999

Consultant: Jeni Browne, 01732 471647

25th November 2015