I recently arranged a remortgage to fund a buy to let for two clients, both of whom are currently based overseas.
My clients in this case were a husband and wife who had been living and working in Switzerland for the past few years. They had no imminent plans to return to the UK, although it was their intention in the long term.
They owned a property in Hampshire which was worth around £900,000. Formerly their main residence, they had been letting this out ever since their move to Switzerland.
My clients had been keeping a close eye on the UK markets, and had decided that now was the time to remortgage. They wanted to release equity from their existing property in order to raise a deposit with which to purchase another buy to let, also in Hampshire.
They had had a number of properties fall through in very frustrating circumstances before they came to us. Having finally found a suitable property, they wanted as efficient a solution as possible to their financing requirements.
As well as a remortgage of £500,000, they were looking to raise a loan of £900,000 against the new purchase, which was valued at £1.5m.
The challenge for me was to find a lender who was willing to look at their overall situation, and who would do both loans together so that the underwriting process was more straightforward.
I had a lender in mind for this type of loan. However, there is one point on which they are generally inflexible; they are normally only prepared to lend this amount of money against London properties. I therefore hoped to call on my good relationship with the underwriter in order to persuade them to relax this restriction for once, and lend outside of the M25.
I was successful in persuading the underwriter to overlook their London-only criteria, and secured both the mortgages my client wanted with the same lender. We negotiated a very competitive, market leading rate of 2.59%.