The client, an office manager living in London, approached us for help in funding his first investment property.
He had made an offer on a 2-bed former local authority flat in Greater London which had been accepted under the proviso that the sale went through within a month.
His parents had kindly given him enough money for a deposit of 60% loan to value, so our challenge was to find a lender that would accept first-time landlords, gifted deposits, ex-local authority flats and complete the mortgage application in a very short timescale.
After talking to a handful of lenders, we found one that could accommodate the client’s requirements.
The lender’s customer team gave excellent service and the application was processed from start to finish in under four weeks. Here are the details of the deal:
Property value: £625,000
Loan amount: £375,000
Product: 2.74% fixed for 2 years
Term: 25 years interest only
Rental income: £2,600 pcm
Gross yield: 5% pa
Mortgage payments: £856 pcm
Lender arrangement fee: £1,875
Consultant: Gary McKenna
Consultant tel: 01732 471652