£800,000 worth of mortgages for family buying new home and turning old property in to a buy-to-let
Trinity Financial's broker Sophie Roe recently helped a couple raise money against their old property by converting it into a buy-to-let, while porting their existing mortgage. As part of the process, she increased the outstanding balance on the ported mortgage to secure the deposit and funds needed for their onward purchase.
What did they do for a living? Management consultants.
Did they have a complex situation? It wasn't that complex. They needed to access 75% of the value of their residential property, while converting it into a buy-to-let/let-to-buy, and then secure 90% loan-to-value on their new purchase. They also needed to port the current residential mortgage as part of the additional borrowing, as they had a low rate and early repayment charges.
Why did they need our help? They sought advice on how to secure the necessary funds, as they had limited cash available. They wanted to do a let-to-buy so they could release the deposit and keep their property as a buy-to-let, while also being chain-free for the onward purchase.
Did we struggle to find a lender? Not really. After researching the market, our broker identified a specialist buy-to-let lender with a reputation for offering low rates and providing fast mortgage decisions. Sophie also ported their mortgage with their existing lender and arranged for the extra funds to be available. Both lenders provided sufficient funds to make the transaction viable.
Was the mortgage on interest-only or capital repayment? The onward purchase was on full capital repayment, and the let-to-buy was on interest-only.
Where did they get our details from? Winkworth estate agents.
Was there anything else unusual? Mortgage affordability was quite tight with most lenders, but it was acceptable with their existing bank. They had some credit cards, a loan, two children and service charges on both properties. This is all taken into consideration for mortgage affordability.
The borrowing across both mortgages was £800,000, and the monthly repayments fit within the preferred budget.
Lending solutions with Trinity Financial
Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
