I recently had a client come to me as he was looking to start investing in property, however he didn’t have enough capital to fund his deposit or own his own home. My client had good income but was struggling getting the deposit together to buy somewhere to live – let alone somewhere to invest in.
After having an in-depth discussion with my client, I presented him with the option to become a homeowner while increasing his available capital to fund the buy to let purchase in one transaction.
As the client’s parents were homeowners, we looked into the option of him joining their mortgage as a third applicant, which would help tick the box of him being a home owner as well as opening the doors for buy to let mortgage options.
However, the fact that mother, father and son were all on the mortgage created a few problems, as most mortgage lenders would base the term of the mortgage on the eldest applicant’s age.
My client’s mother and father were both in their 50s and he in his 20s, so a term of 15 years would have simply been unaffordable for his parents based on the amount of capital being raised.
This was undoubtedly a challenge, however, I was able to pull my resources and find a lender who would be willing to consider the application with all three, basing the term of mortgage on the son’s age.
This meant we were able to base the borrowing on the son’s income and his age alone, which would not only make monthly repayments much more affordable, but also help to release the £80,000 of equity to fund the buy to let purchase.
My client and his parents were extremely happy with this result as they were able to achieve everything needed to solve their situation.
I managed to secure all of this at rate of 1.59%, which would be fixed for two years. This offer also came with free valuation.