At Enness, many of our clients are property investors looking for a Buy to Let mortgage to expand their portfolios. Just before Christmas, an estate agency we work closely with, Benham and Reeves, referred us one of their clients seeking a buy to let mortgage for a property he had found.
The buy to let was a 3 bed terrace in Hampstead that he wanted to move quickly on. Residing in the area himself, he identified the buy to let property as being a solid investment available at a good price of £1,000,000 which he was keen to take advantage of. The client’s key priority was to have the mortgage on the buy to let property agreed quickly so he could proceed to exchange contracts.
As a partner in a law firm, with a substantial income of approximately £1,000,000 per year, the client had little time to devote to this himself. Despite a strong personal income the property offered a relatively modest rental yield and given the primary focus for agreeing a buy to let property mortgage is rental income – this presented a significant hurdle to overcome.
Through my experience in negotiating mortgage deals with lenders for London investment property, which typically have low yields, I approached a lender who I knew would be keen to assess the client’s wider profile and not just focus on the rental income on a ‘tickbox’ basis.