What was the situation?
I was contacted by a client looking to purchase their first buy to let investment property via a limited company, whilst simultaneously remortgaging their main residence. This was so they could release equity to cover the deposit, stamp duty and purchasing costs.
Located in London with a value of over £500,000, the client required a loan of £275,000 against the property in order to refinance their existing mortgage and raise the additional funds needed to go toward the deposit for the rental property. The buy to let property was valued at £120,000 and located in the North of England. They needed just under £80,000 deposit for the buy to let limited company mortgage.
What was the issue?
The main issues with this case was that not only was the client a first time landlord, but they had an active debt management plan in place and as a result, defaults were listed on their credit report.
What was the process?
Using my knowledge of lender criteria, and arming myself with a copy of the client’s credit report, I was able to research the market and identify suitable lenders for both the residential mortgage and the buy to let mortgage.
Knowing every intricacy of the case, I was well informed to discuss the applications in detail with our contacts at both lenders who advised me to submit the applications, confirming they would monitor the cases on their end and help to see them through.
What was the solution?
The client had previously been told by two other brokers that it was not possible for them to secure a mortgage based on their credit profile. However, I went above and beyond to use my knowledge and research skills to secure both residential and buy to let mortgages.
I was able to successfully secure the full £275,000 required on the residential mortgage at a more competitive rate than the client’s existing deal. The monthly payments were actually lower than the client was currently paying on interest only with their current lender, despite moving the mortgage onto capital repayment and borrowing additional money. I was also able to secure a buy to let mortgage with a very competitive lender who operates in the limited company buy to let lending space.
The client was beyond pleased that I was able to not only secure a better deal on their residential mortgage, but also complete on their buy to let purchase. A successful outcome all round!
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We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.
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