Our client was keen to purchase a large property valued at £2 million and secure it using as smaller deposit as possible.
As a professional landlady she has a number of properties and lots of experience in the buy-to-let market.
Like many expensive buy-to-let homes in London, the rental income generated by the property was not as much as many of the lenders expect.
Trinity approached a specialist buy-to-let lender offering £1 million plus buy-to-let mortgages to clients with a 20% deposit.
As the lender offers a different buy-to-let rental calculation if you lock into one of their five year fixes, they applied a rental calculation of 110% at the pay rate rather than 125% at the pay rate. This meant they would offer a large buy-to-let let loan.
Also, as our client had more than three properties in her property portfolio the lender was happy to offer her a large enough buy-to-let mortgage.
Property: Five-bedroom house in central London
Value: £2 million
Mortgage: £1.6 million
Rate: Fixed rate at 4.79% for 60 months
Lenders arrangement fee: £32,000 (2% of the loan amount)
Mortgage term: 25 years
Repayment type: Mortgage taken on an interest-only basis
Reversion rate: The lenders standard variable rate, currently 4.84%
Early repayment charge: 4% of the loan amount for 12 months, and then 3% of the loan amount for 48 months.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
If you would like help to secure a large low deposit buy-to-let mortgage, call Trinity on 020 7016 0790.