I recently helped a client secure a let to buy deal as she was looking to purchase a new build property in London. Firstly, the property was to be purchased for £780,000 with a 20% deposit, a percentage which is generally quite low for a new build. This client had been referred to us by the property developers and was looking to buy the property with her husband, as their existing home was in her name. This all seemed relatively simple, however, there were a few additional details that had the potential to create challenges.
Firstly, my client was not looking to sell her existing property as she wanted to rent it out instead. Because of this, we would need to unlock equity from the current property in order to obtain a sufficient amount to cover the 20% deposit. In addition to this, we had to consider the fact my client wanted to buy the second home with her husband, so the mortgage would be under both of their names.
The trickiest aspect of this case, however, was the fact that my client had only just started a new job. This meant I would need to find a lender who would be willing to work off of my client’s new contract alone, without any payslips or proof of employment history with the new employer. This would normally be deemed as unacceptable when applying to the majority of lenders.
Despite this, I was able to source a lender who confirmed they would be happy to accept a signed contract from my client rather than waiting for a payslip. This allowed my client to hold onto her current property and rent it out as planned, so that her and her husband would be able to buy their dream home, before property prices continued to rise.
By holding onto the current property and taking the mortgage up to 60% loan to value (LTV), we were able to access competitive terms for a 2.39% fixed rate on the remortgage. I was also able to obtain a 2.09% fixed rate for the property purchase side of the deal.