A 21-year-old landlord approached her broker looking to raise capital against her rental property – a three-bed flat. She works full time in a bank and is a basic rate tax payer. As such she was looking to borrow personally.
The client owned the flat outright and wanted to raise finance to use as a deposit on another rental property. The property had originally been given to her as a gift by her mother as part of her inheritance and tax planning strategy.
✔ Minimum age at application is 21
✔ The flat had been recently converted from 2 to 3 bedrooms
✔ Manual underwriting
✔ Broker proc fee: £1,680 (0.7% of loan amount)
Property value: £350,000
Loan amount: £240,000
Rate: 3.99% 5 year fixed
Lender arrangement fee: 2% (£4,800)
RTI: 145% @ 3.99%
Similar case to place? Call us today on 0345 148 9086 or send us an email.