The client: Our client is a buy-to-let landlord with a portfolio of properties who had spotted a further investment opportunity. However, he needed to release equity from three of his rental properties to raise the deposit for the purchase; this was not straightforward as two properties were under one title so many high-street lenders would not consider the remortgage.   There were further complications when it came to the client’s income as he is a self-employed director of a limited company with profits retained in the business, as well as taking a salary.   In addition to a lender prepared to lend against two properties under one title, we needed a lender who would take the retained profits into consideration when working out how much our client could afford to borrow. Key requirements: –
  • A lender prepared to lend against two properties with one title.
  • A lender happy to take retained profits into account when calculating how much the client can borrow.
  • A lender willing to add the arrangement fee to the loan.
After sourcing the mortgage market, we identified three lenders who agreed to lend on each part of the transaction at competitive rates. The application process: To support the remortgage application, the client provided his income details, as well as rental income from his properties and evidence of his identity. We were delighted to inform him that three lenders had issued formal offers for the full amount requested for both remortgages and the onward purchase.
  • Buy-to-let remortgage (two properties under one title), joint property value: £450,000
  • Loan amount: £337,500
  • LTV: 75%
  • Rate: 6.59% fixed for five years
  • Lender product fee: £1,999 added to the loan
  • Monthly payment: £1,864 (11-year term, interest only)
 
  • Buy-to-let remortgage, property value: £600,000
  • Loan amount: £300,000
  • LTV: 50%
  • Rate: 4.49% fixed for five years
  • Lender product fee: £1,495 added to the loan
  • Monthly payment: £1,122 (25-year term, interest only)
 
  • BTL onward purchase, property value: £1m
  • Loan amount: £300,000
  • LTV: 30%
  • Rate: 4.32% fixed for two years
  • Lender product fee: £995 added to the loan
  • Monthly payment: £2,869 (11-year term, repayment)