A self-employed decorator and part-time landlord from outer London approached us looking to remortgage two of his three rental properties.
The properties in question are two identical 2-bed semi-detached houses, both in the same street.
The landlord was hoping for a quick turnaround time, as he wanted to use the capital raised to purchase a new buy to let property that he had seen on the market.
As well as a quick turnaround time the client had requested fee free mortgages on both properties – meaning he wouldn’t be charged a valuation, legal or arrangement fee.
Fortunately here at Mortgages for Business we track lender turnaround times, so know who can get the case processed quickly.
We also have access to the whole buy to let market, so are able to offer fee free mortgages.
We approached a lender with a good record of fast turnaround times and highlighted the need for speed in this instance.
The client received a formal mortgage offer within five days of submitting the application.
The case is now progressing smoothly and the lender anticipates that the funds will be available for draw down within a month.
Here are the details of the deal:
(Both properties are identical)
Property value: £150,000 each
Loan amount: £100,000 each
Rate: 3.74% 2 year fixed + free legals and valuation
Term: 10 years interest only
Mortgage payment: £311 pcm
Rental income: £650 pcm
Gross yield: 5.2% pa
Lender arrangement fee: Nil
Consultant Mortgage Broker: Paul Martins