The clients: Our clients were looking to arrange a let-to-buy (LTB) mortgage to release equity for a new residential mortgage property purchase. We were required to arrange both the LTB mortgage and the mortgage on the new property.
One of the clients is a partner in PwC so owns 1 per cent of the company and receives no pay slips. We therefore required a lender who would accept a letter as confirmation of both the client’s contract and income.
But, numerous lenders were sourced but the clients required a large amount of borrowing and required to fit affordability on two mortgages.
Key requirements:-
A lender comfortable with the client’s employment status (1% partner). • A lender comfortable with re-mortgaging on an Let To Buy to release enough equity for the clients’ deposit on the residential mortgage purchase. • Borrowing of £1million on the new residential purchase. Total lending across both mortgages of £1.8million. After sourcing the mortgage market, we identified a lender who would agree to lend our clients the full £1.8m across two properties.
The application process
In other words, to support the mortgage application. The clients supplied us with proof of identity and address. As well as the letter from PwC confirming the client’s contract and income. We were delighted to inform our clients that the lender had issued two formal mortgage offers for the full amount requested. Property value: £1.4m on Let to Buy; £1.665m on new purchase Loan amount: £840,000 on LTB; £999,000 on new purchase LTV: 60% on both mortgages Rate: 1.6% fixed for two years on Let to buy; 1.17% fixed for two years plus £250 cash back on new purchase Lender product fee: £995 on both mortgages Monthly payment: £1,121.33 on LTB; £6,456.05 on new purchase
