An experienced portfolio landlord with over 50 properties wanted to refinance his 1930s home on an interest-only mortgage. Due to rental income, we faced challenges, but we secured a deal with a lender who accepted his exit strategy, maximising his borrowing amount.
At a glance:
- A portfolio landlord with 50+ properties looking to refinance his detached 1930s home.
- Income solely from rental properties
- Looking to remortgage onto an interest-only mortgage
The Case:
Our experienced landlord client has worked with MFB for many years, trusting us to secure the right property finance for his extensive portfolio of over 50 investment properties. For this case, our client approached us to review his home remortgage.
The client’s home, a three-bedroom detached property in a stunning countryside location, had come to the end of its fixed-rate term. Now, our client was looking for an interest-only remortgage to keep his monthly repayments low; however, with income solely from his buy to let properties, we were restricted by which lenders we could approach.
The Challenge:
As a large portfolio landlord with income solely from property, we got to work immediately, approaching the most cost-effective lenders to discuss our client’s requirements. We took our time and careful due diligence to explain the case to each lender to find the most suitable solution for our client. Rental income and caps on loan-to-value for interest-only mortgages were common reasons lenders denied the case.
After speaking with several business development managers from the more specialist lenders, we found a lender happy with the interest-only requirement. We presented our client’s ‘exit’ strategy of selling both the main residence and other unencumbered buy to let properties to repay the total capital amount, which the lender was able to accept. Furthermore, despite a cap on the full loan amount, the lender used the client’s profit after tax for the income assessment, maximising the borrowing amount.
With all our client’s requirements met, we secured a competitive deal for our client.
The Finance:
Property value: £915,000
Loan amount: £665,000
LTV: 72%
Rate: 4.60% 5-year fixed*
Term: 23 years, interest-only
Monthly mortgage payment: £2,544.37
Lender arrangement fee: £1,995
The Review:
5* Trustpilot
Excellent Company to Deal With
Being a long-term professional landlord, working with the right brokerage firm is vital and MFB is the best I've come across.
*Rate as at February 2024.
Next steps
Find your next buy to let mortgage
Are you looking to secure a buy to let mortgage? Head over to our easy-to-use buy to let mortgage calculator to compare rates or get in touch with one of our BTL mortgage brokers: https://www.mfbrokers.co.uk/calculators/buy-to-let-mortgage-calculator
