It’s been almost two years since the Bank of England’s Prudential Regulation Authority (PRA) introduced changes in regulations for buy to let landlords. Since that time, our team of expert advisers has helped countless landlords negotiate bespoke lending solutions to fit their individual requirements.
Many landlords chose to move their property investments into a Limited Company, which has some tax benefits. However, it can make it more complex to leverage individual properties within the portfolio.
Case profile
One of our recent clients faced this exact challenge when looking to leverage their portfolio to raise cash for improvements to their primary home. They were paying a high rate of interest to their existing private bank and struggled to find a lender happy to lend further due to our client’s age and minimal personal income.
Solution
Our Senior Mortgage Associate Nigel Bedford’s knowledge of this space meant that we were able to find a lender willing to work within our client’s parameters. They would lend to a Limited Company and allow capital raising with no age restrictions or minimum personal income requirements. The lender was also content with the security of our client’s prime central London property as an assurance on the lending package.
If you are looking to leverage your buy to let portfolio, talk to the experts who understand this complex space. We have the skills and experience to ensure you’re getting the best rate with a lending solution to fit your individual requirements. We look forward to hearing from you.
| Loan amount: | £2,400,000 |
| Rate: | 5 Year fixed rate 3.79% |
| Loan To Value: | 60% |
| APRC: | Overall cost for comparison 5.40% APRC representative variable |
| Term: | 9 Years |
| Type: | Interest only |
| Loan purpose: | Buy to Let Remortgage |
| Lenders arrangement fee: | 0.01% of loan amount |
| Early repayment charges: | 5% in Year 1, 4% in Year 2, 3% in Year 3,4 & 5 |
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 5.40% APRC representative variable based on 68 monthly payments at a fixed rate of 3.79% followed by 48 monthly payments at the lenders buy to let variable rate, currently 6.83%. Because part of your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to 13.83%, the APRC could increase to 15.3%. The actual rate available will depend upon individual circumstances and may not be available to everyone. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing other debts against your home.
The FCA does not regulate some aspects of Buy to Let mortgages.
