Facing a looming ERC date, our Limited Company portfolio landlord client needed to remortgage and capital raise one of his properties. Discover how we quickly secured a competitive mortgage offer in under 10 days.
At a glance:
- A Limited Company portfolio landlord with 25 properties
- The client was fast approaching the end of their fixed-rate term and a significant increase in monthly repayments
- A remortgage with a capital raise to fund further investments
The Case:
Our client is an established full-time Limited Company landlord with 25 properties. He approached us looking to refinance one of his properties nearing the end of its fixed-rate term.
As well as looking for the best remortgage rate, our client wanted to use this opportunity to raise a deposit to fund a new investment property purchase. The client trusted us to find the most competitive deal to suit his needs for this application. As an existing MFB client, we already had a thorough understanding of his portfolio.
The Challenge:
The client’s ERC date was fast approaching, meaning we were on a tight deadline to find the best mortgage deal before he rolled onto his lender’s standard variable rate (SVR) and faced a significant increase in his monthly repayments.
Furthermore, his portfolio of 25 properties far exceeded the 10-property threshold many standard lenders set in their criteria.
Familiar with cases like this, we approached a specialist lender that is comfortable offering to Limited Company portfolio landlords. Our extensive knowledge and established relationship with this lender meant we quickly gathered the documentation needed for the application.
With plenty of available equity in the property, the lender was also able to offer the capital raise to the client, enabling him to pursue his new property investment venture.
Having submitted all the documents together in the early stages, we successfully secured our client a competitive mortgage offer in under 10 days.
The Finance:
Property value: £90,000
Loan amount: £67,500
LTV: 75%
Rate: 4.69% 5-year fixed*
Term: 25 years, interest-only
Monthly mortgage payment: £271.73
Lender arrangement fee: 3% (£2,025)
*Rates as at October 2024
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