We were approached by a client of ours who wanted to restructure and increase a large buy to let mortgage, essentially remortgaging to release capital.
As it stood the buy to let mortgage was secured against a single high value property in Central London.
The extra funds would be used for further property investment as he wanted to expand his property portfolio.
To further complicate the matter the buy to let property was not let at the time of application.
An additional £800,000 was raised to take the full loan to £1.8m. The whole mortgage was agreed at a rate of 2.5% over 3 month LIBOR (circa (3.35%).
6 months interest cover was locked in an account with the lender until a tenant was found, at which point the cash was released.