Our experienced landlord client successfully purchased his dream home with a mortgage tailored to his buy to let income. With MFB’s support, we navigated lender affordability challenges to secure a mortgage offer in just three days.
At a glance:
- Professional landlord client with income solely from rental property
- Purchasing a dream family home
- Mortgage offered in just three days
The Case:
Our experienced landlord client had worked with MFB on several cases for his buy to let property investments and was now looking to purchase his dream home. The detached property, in a desirable residential area, was finished to a high standard and ready for our client to move straight in. With a young family to consider, it was essential to find the right mortgage.
Our client was looking to borrow a large amount whilst still securing a low, competitive rate. However, with income solely from his buy to let properties, the number of lenders our clients had access to was restricted.
The Challenge:
Our client’s income was solely from rental properties, so we had to consider which lender to approach for this case carefully. In this scenario, many lenders view the buy to let mortgage payments as credit commitments, limiting how much a client can borrow. Therefore, we had to find a lender comfortable with the rental income on these properties covering the mortgage payments.
With our whole-of-market access and experience working on complex mortgage applications, we easily identified a lender happy to consider 100% of the rental profits as income. In addition, our client has no intention of selling any of his buy to lets, allowing us to extend the mortgage term until the client’s 75th birthday, maximising how much our client could borrow.
Our expert advice and guidance meant that our client had all the necessary documents prepared before submitting their mortgage application and received a full mortgage offer in only three days. Here are the details:
The Finance:
Property value: £480,000
Loan amount: £245,800
LTV: 51%
Rate: 4.90% 2-year fixed*
Term: 27 years, capital and interest
Monthly mortgage payment: £1,369.38
Lender arrangement fee: £999
*Rate as at April 2024.
