I recently secured a buy to let remortgage for a professional client who was working in The City. As the current owner of approximately 5 buy to let properties, as well as his own main residence, my client was looking to purchase a new property based in Battersea.
Most buy to let lenders when calculating this type of deal will use the rental income figure, although my client’s rental income unfortunately did not amount to enough. Because of this, we would need to capital raise against all the existing properties in order to raise a deposit. This case is a great example of what can still be achieved, even when a lack of affordability is set to work against your favour.
As my client’s income was too low to justify the remortgage loan, he required a lender who would be willing to look at both personal and rental income to amount to the figure needed. The key problems I faced with this case, therefore, were affordability, rental stress tests and the overall debt ratio. I was going to have to be creative!
Luckily, I knew I would be able to contact a reputable lender who would be more willing to bend the usual strict criteria used in high street banks. As such, the loan was approved and the funds were released without any hitches – so my client could purchase the new property stress-fee.
I managed to secure the amount needed and have the deal fully completed all within just 5 weeks. Not only could my client access the funds needed, we also secured the remortgage loan at extremely favourable rates, with access to free standard valuation and legal services included.
My client was over the moon with this deal and we are now in the process of arranging the purchase of the £2 million property in Battersea.
I was able to secure a rate of 2.54% for a buy to let, which was fixed for 2 years.