Restructuring of whole buy-to-let portfolio to clear second charges

The clients were established property investors, having already owned five investment properties in the UK and were now looking to refinance their existing portfolio, to not only invest in further BTLs, but to also clear their second charge mortgage debt.

After a review of their existing finances, it was made clear they required urgent assistance with their existing debt on their properties and a review of their existing mortgage structure:

• The second charge was equity based and was increasing at fast due to the property value increasing and in the case of one of the properties, if the mortgage was left for one more month in its current structure, the debt on the property would have exceeded the equity.
• Only one of the existing properties was owned by both clients, with each client owning two of the other properties.
• The existing mortgages were on the SVR which had increased to a point where they were barely making a profit. They were unaware they could refix this to a lower rate.