What was the situation?
Our client had spontaneously seen their dream home for sale, however they did not have their current home for sale. They wanted to act quickly to secure the new purchase as there were other parties looking to offer on this new home.
What was the issue?
They did not have enough funds for a deposit on the new home and needed to move quickly and release funds, ideally by leveraging their current property. To release the funds, they needed to obtain a let to buy mortgage on their current home. This would mean that they could rent out their old home, however the anticipated rental income they could receive, which they would use as the deposit amount, was calculating out to be lower than required.
What was the process?
Sourcing a lender from the whole of the mortgage market to ensure the best possible product for the client, we quickly secured a lender. The lender could not only release the funds needed from the let to buy mortgage, but could also look to lend on their new home.
What was the solution?
The lender was able to use the client’s income to support the loan in addition to the rental income for the new let to buy mortgage. This gave them the requested amount of funds for the deposit for the new home! The new income stream from their let property, once the monthly mortgage is paid, is able to be used to reduce their overall monthly costs for their new residential mortgage.