Our client was looking to remortgage his buy to let property that he had recently renovated (and never actually let) to capital raise for a deposit on a new buy to let property. The main issues were:
- the client does not own a residential property
- the large amount he was looking to raise
- the high level of rental income required to cover the monthly interest payments
- the possibility of rental voids, because his income (£50,000pa on a self-employed basis) would not be sufficient to cover the monthly repayments at this loan amount
With the property valued at £2m and the current loan £650,000, we negotiated a new loan of £1m, raising £350,000 capital. One particular lender was prepared to offer a competitive priced mortgage based on the circumstances above.