A couple were in the unique situation of needing a buy to let mortgage for a mixed-use property whilst venturing up their first step on the property ladder. MFB's team of mortgage brokers were there to guide them through the process.
The Clients
A married couple from Shropshire who were looking to purchase their first investment property. The husband worked in financial services and the wife was a teacher in a local primary school. They were first-time buyers and first-time landlords.
The Property
A mid-terrace property on the outskirts of a Shropshire town. A small accountancy practice leases an office set on the ground floor, whilst upstairs is a 2-bed flat let to a working couple. The property also has a small private courtyard.
The Finance
The couple had a deposit of £51,000 from their personal savings. New to property investment of any kind, the couple wanted our help to find a buy to let mortgage lender who would not only accept first-time buyers but could also process applications very quickly.
Most lenders require applicants to be homeowners already and have experience in letting property, especially when purchasing premises with a commercial element.
The Application Process
We took the case to a particular specialist lender we work with often and know to accept first-time landlords. As we track lenders' processing times, we knew that the lender could work within the clients' required timescale.
In support of the application, the clients provided proof of identity, address and income. The ensuing valuation report confirmed the property to be good security for the loan and just a few weeks later, a formal mortgage offer was issued, to the delight of our clients.
Property Details
Property value: £170,000
Loan amount: £119,000
LTV: 70%
Rate: 3.36% 3 year fixed
Term: 25 years interest only
Lender arrangement fee: £899
Mortgage payment: £366 pcm
Rental income: £1,000 pcm
Gross yield: 7% pa
Consultant: Robin Tate, Senior Consultant Mortgage Broker, CertBB&C
Have a similar case?
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