We were approached by a doctor who also has a portfolio of three rental flats held in his trading limited company.
In order to raise capital for further purchases, the doctor was looking to refinance the entire portfolio onto one rate rather than refinance each separately.
The flats are all very similar, in a purpose-built block located in SE London.
The choice of lender was restricted to just a handful of providers because not many will accept trading limited companies and the client wanted one rate for all three flats and a low arrangement fee.
We approached a bank which is willing to consider these more commercially focused deals and the following terms were offered.
It should be noted, that in order to secure this very competitive rate, the doctor was obliged to transfer his business banking to the lender too.
Portfolio value: £900,000
Loan amount: £565,000
Rate: 3.59% 5 year fixed
Term: 25 years interest only
Borrower: Trading Ltd Company
Lender arrangement fee: £1,999
Mortgage payment: £1,690
Rental income: £3,450 pcm
Gross yield: 4.6% pa
Consultant: Nick Helm, 01732 471608