house prices
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Lending into retirement for Portfolio Landlords – Case Study

The Client:

The client was a semi-retired gentleman who had a portfolio of Buy to Let properties. His income mainly derived from this portfolio.

Scenario:

The client had the opportunity to purchase another portfolio of properties and needed to refinance his current properties quicky to secure funding for the deal.

We looked at the option of remortgage but with multiple costs and valuations needed, this did not fit the clients budget or timescales.

We then looked at the option of using second charge lending which was made more difficult due to many of the current mortgages being with now defunct organisations who would be unlikely to allow a second charge on their asset.

Discover our Buy to Let Mortgage Broker services.

The Solution:

Using our specialist panel of suppliers, we aware able to secure funding for the client at a competitive rate with one lender who took a charge across all the properties in the client’s portfolio. This resulted in fewer charges for the client and a much quicker transaction, meaning the client was able to secure the new properties he had his heart set on.

Summary:

When a client needs to move forward quickly, this does not always means higher fees and rates. As a whole of market broker we can make sure we are recommending the right lender for our clients individual situations, also making sure they are given the best customer service possible to secure the deals in a timely manner.

Contact us today to speak with one of our CeMAP certified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

Buy-to-let
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BTL Remortgage with Capital Raise for Portfolio Landlord – Case Study

The Client:

The client was an employed lady with various investment properties, all of which were mortgaged. The client had some previous issues with her tenants in some of the properties and was looking to remortgage to a more favourable rate on order to reduce her monthly payments. Her income was a combination of salary and income from Land and Property.

Scenario:

The client wished to refinance the Buy-to-Let Mortgage and raise further capital whilst reducing the interest rate and monthly payments on one of her portfolio properties. She had historic credit issues due to tenants not paying which resulted in one of her properties being repossessed by the lender and the balance of the debt was still in dispute with.

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The Solution:

We sought out a specialist BTL Lender from our panel who was able to accommodate the adverse credit and the previous repossession to not only raise capital but also reduce the current rate of interest paid and her monthly mortgage repayment even with a larger loan.

We checked with a number of lenders regarding their specific criteria to ensure that the loan could move forward with the minimum of issues prior to our application.

Summary:

Client’s often think remortgage doors are closed to them when they have adverse credit, however as a whole of market broker we can provide options for even the most complex of cases by using our knowledge set and resources available to us.

Speak to us today to speak with one of our professionally qualified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

residential
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Residential Purchase with Foreign Currency Income – Case Study

The Client:

The clients were husband and wife. The husband was the sole earner, and on a very good income. The difficulty arose with the currency he was paid in – Saudi Dirhams, as he was working for a Saudi company.

The Scenario:

The clients had saved a good deposit and had a very low credit card use, along with no bad credit or dependants. The main credit they had was a large car loan which had recently been arranged. The issue we were facing was that lenders who accept foreign income sometimes take a haircut (reduce affordability) to account for any potential future fluctuation in the currency exchange rate.

The Solution:

Being a whole-of-market Mortgage Broker, we have the knowledge to know that some lenders will accept foreign income for UK based residents to purchase a residential property in the UK. We approached these lenders to make sure we could cross reference the best deal with the lender that accepts the specific currency in question. They were happy with the case, and the affordability worked easily.

Discover our Commercial Mortgage Broker services.

Summary:

It is possible to use sole income that is earned through a company outside of the UK, in a foreign currency.

Key things to consider for foreign income:

  • Some lenders will accept foreign currency, it can vary lender to lender which currency they will accept.
  • Some lenders will apply a haircut to the amount to account for future changes.
  • Some lenders will allow you to live in the UK, but work for a foreign company.

Speak to us today to speak with one of our CeMAP qualified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

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Limited Company Remortgaging with Capital Raising for renovations – Case Study

The Client:

The client was part owner of a Limited Company with a multiple directors. The property was owned by the limited Company and was a listed building which had previously been converted for use; partly to house their information technology company and the remainder would be used for either office space or lettable accommodation – this was to be decided once additional funding had been secured.

Scenario:

The client wished to raise additional funds to complete necessary conversion works and also secure more favourable terms than their current lender. Current lender was no longer willing to extend further finance due to the intended conversion works on the property and the nature of the building itself.

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The Solution:

We sought out a specialist lender who was able to accommodate the building type, the ownership via a Limited Company and the intended conversion works while still obtaining very favourable market rates.

We checked all criteria with the lender were able to secure terms with a minimum of paperwork and a very quick turnaround time.

Summary:

Lenders can be cautious of conversion and renovation projects, especially on listed buildings. Those that will accept often have much higher rates on offer, however as a whole of market Broker we have the tools to find a solution for these clients at much more favourable rates then they may have previously been quoted.

Speak to us today to speak with one of our CeMAP qualified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

bridge to bridge
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Bridge to Bridge Refinance – Case Study

The Client:

The client’s objective was to remortgage his Consumer Buy to Let property to repay the temporary Bridging Finance in place.  They had already taken an extension to repay the Bridge and were running out of time.  The bridging lender was threatening to take action to force sale of the property due to exceeding the term of the bridging finance, therefore client needed to move fast.

The Scenario:

On assessing the application, the bridging finance in place was a cross-charge over two properties, with most of the amount to be repaid secured against the client’s Consumer Buy to Let property.  The affordability of the remortgage was failing, so it was agreed with the bridging company that the client could repay the charge against the Consumer Buy to Let property for £455,000, which would leave the remaining funds as a charge against the client’s residential property.

Contact us today to discuss Bridging Loans and how we can assist you.

The Solution:

The remaining funds of the bridge remained as a charge against the client’s residential property under new bridging terms, allowing the client to take another 12-month bridge with the same bridging lender.  This reduced the risk of the bridging lender forcing a sale of their residential property.  

A remortgage for £671,000 was secured for the client against the Consumer Buy to Let property and the affordability was self-funding from the rental income. £455,000 was used to repay the bridge and the remaining funds to repay the existing mortgage balance.

The client’s income would have increased substantially by the time the bridge was due to be repaid on the residential property which helps the client to remortgage the residential property to repay the remaining balance of the bridge.

The customer was then able to keep both properties and force of sale was eliminated.

Summary:

Even when our clients feel they have no options available to them other then the resale of properties we can assist as a whole of market Broker and find solutions for some of the most complex cases.

Please get in touch today with our dedicated team of Specialist Mortgage Advisers for any Bridging Finance or Commercial Finance enquiries or questions you might have. Call us now on 03303 112 646. Alternatively, you can also fill in this short online form and we will get back to you straight away.

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Expat Limited Company Buy to Let Remortgage – Case Study

The Client:

The client had a large portfolio of 17 properties. The properties were of mixed ownership comprising of personal name, Limited Company with his wife and Limited Company with his sister. Clients’ sister lives in Australia and although a Shareholder of the Limited Company, not an active Director.

The Scenario:

Two of the properties under the Limited Company entity with client’s sister as 50/50 Shareholder were coming to the end of their fixed rate, therefore required remortgaging. These were previously done through Commercial Finance Network on Expat mortgage basis, which required both applicants to be on the application. The task here was to find the best possible deal, in a difficult marketplace where Expat rates have increased a lot.

The Solution:

Being a whole-of-market Broker, we have the knowledge to know that some lenders have no overall portfolio limits and do not restrict ownership, loan to value or overall rental stress. We also are aware that there are lenders that will consider Limited Companies without taking shareholders into consideration, if they are not a Director. We therefore sourced the deal based on the UK applicant to see if we could bypass the Expat deals and secure a normal Limited Company buy to let deal exclusively for UK based clients.

The lender we found did exactly as we thought. They would only need the Director of the company to apply, disregarding any Shareholders in the background. This in turn gave us access to a far better deal than we would have been able to achieve if both shareholders were required on the application.

Discover our Expat Mortgage Broker services.

Summary:

It is possible to achieve something with lots of challenges and moving parts. It’s just about knowing the lenders and having experience with their criteria.

Key things to consider for portfolio landlord remortgage of properties with a UK Director/shareholder, and an Expat shareholder.

  • Some lenders have no restrictive limits on your existing portfolio
  • Some lenders are happy to lend to the director of the company only, and discount the shareholder
  • It is possible to get standard limited company buy to let rates for a complicated structure that involves an expat

Please get in touch today with our dedicated team of Specialist Mortgage Advisers for any Remortgage or Mortgage questions you might have. Call us now on 03303 112 646. Alternatively, you can also fill in this short online form and we will get back to you straight away.

fixed and variable mortgages
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Joint Borrower Sole Occupier Mortgage – Case Study

The Clients:

In this instance, our clients were a Mother and Daughter who wished to make a joint application. The Mother had recently sold her property and was looking to purchase a new property which would become her main residence.  The Daughter lived with her partner quite a distance away from her Mother, therefore the plan was for the Mother to find a new residential closer to the Daughter’s family home.

The Scenario:

A suitable property was found close to where the Daughter resides with her partner.  However, the proceeds of the sale of the house were not sufficient to purchase the property outright.  The property that Mother and Daughter wished to purchase required a mortgage of £90,000 to complete the purchase, but this proved difficult to obtain due to Mother’s age and affordability. 

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The Solution:

A Joint Borrower Sole Proprietor Mortgage was recommended – this allowed the Daughter to continue living with her partner and the Mother to move into the property.  Both Mother & Daughter are responsible for the mortgage payments, and both named on the mortgage.  However, Mother would be the sole proprietor.

The Lender was happy to go to the maximum age of 99 years based on mother’s age.  The lender viewed Daughter’s bank statements which confirmed Daughter did not contribute to the running of her partner’s home and affordability of the mortgage was confirmed by the Lender.

To protect the Daughter’s interest in the property, the Daughter had taken independent legal advice.

The mortgage completed without any issues and delighted to say the Mother is very happy in her new home and close to her Daughter.

Summary:

Securing finance in later life can be challenging as lenders will normally only lend up to retirement age, therefore making monthly repayment amounts unrealistic and unaffordable. As a whole of market Mortgage Broker, we can explore all avenues to find the best solution for our customers that work with their plans and budget.

If you have any questions relating to Residential mortgages &/or non-standard scenarios such as this, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

mixed use remortgage
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Mixed Use Remortgage – Case Study

The Client:

The client was a retired Doctor who owned an unusual property which had a combination of Commercial, Residential and also Buy to Let units within the same building. He also owned another Buy to Let property in his portfolio. The client’s Income was predominantly from his pensions and also from land and property owned.

Discover our Residential Mortgage Broker services.

Scenario:

The client wished to extend the subject property to allow for further use of the commercial element, thus significantly enhancing his rental income. He wished to refinance all current loans and raise capital toward the planned extension works. However, due to the multiple types of property contained in the single title his current lenders and high street lending options were not available to him.

The Solution:

We sought out a specialist Commercial Lender who was able to accommodate the multiple different uses within the single freehold title, whilst also still ensuring the interest rate was remained as competitive as possible.

We discussed in detail with the Lender upfront regarding their specific criteria particularly towards the minimum and maximum size of each unit within the overall freehold and also confirmed this with the client prior to our application to avoid any potential pitfalls.

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Summary:

Mixed use properties require specialist Lenders, since High Street Lenders do not lend on this type of property, nor do a number of Commercial Lenders, especially when criteria such as single freeholds, capital raising and building works all apply. In instances such as these, an experienced and knowledgeable Commercial Finance Broker have all the required expertise to be able to secure the best deal and rates available, as well as crucially ensuring a successful completion to the refinance.

Contact us today to speak with one of our professionally qualified Commercial Finance Brokers. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

BTL auction purchase
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Portfolio Landlord BTL Remortgage with Short Lease – Case Study

The Client:

The clients are both portfolio landlords. The husband owns 14 Buy to Lets and the wife owns 12. They both have good credit and earnings. They also own their own residential property.

The Scenario:

The wife owns a Buy to Let flat in her name only, but they wish to add the husband onto the mortgage, so it is jointly owned between them both. They are looking to release some capital as part of the process to pay to extend the lease, which is currently far too short. They are also looking to purchase the freehold of the property.

The block is two flats in a converted terraced house. There are multiple things to consider here. The first is the number of properties they already own, as some lenders have limits on how many properties people can own, as well as the overall loan to value and stress coverage over the portfolio.

The second thing to consider is the lease. Once a lease is too short, the value and re-saleability of the property decreases drastically. Another point to consider is we need a lender that will accept adding the husband on to the mortgage as part of the transaction. The final things that we need to worry about is the exposure in the block (50% ownership) and the purchasing of the freehold, as most lenders do not allow the freehold to be owned in the same name as the leasehold ownership in the same block.

The Solution:

Being a whole-of-market Broker, we have the knowledge to understand that some lenders have no overall portfolio limits and do not restrict ownership, loan to value or overall rental stress. We also work with lenders that are happy to allow submission and underwriting of an application of a property with a very short lease, if it can be added as a condition of the offer that the lease will be extended on completion with the money raised as intended.

Most lenders are fine with a transfer of equity to add someone to a mortgage as part of the transaction, and this is largely dealt with by the solicitors. Different lenders have different criteria for percentage of ownership in any given block. Some are 25%, some are 33% and some are 50%.  In this case we had to get a Lender that was ok with half ownership within a single block.

The final aspect here is the freehold. This can be tricky as lenders do not generally like a leasehold on a flat to be owned under the name of the same legal entity as the freehold. The way around this was to inform the clients that they would have to purchase the freehold into a limited company name, so there was enough legal separation between the two.

Discover our Buy to Let Mortgage Broker services.

Summary:

It is possible to achieve something with lots of challenges and moving parts. It’s just about knowing the lenders and having good experience with their set criteria.

Key things to consider for portfolio landlord remortgage of flat with very short lease, transfer of equity and raising money to purchase the freehold of subject property Debt to income ratio

  • Some lenders have no restrictive limits on your existing portfolio.
  • Some lenders are happy to lend with short leases so long as it’s a condition of the offer to extend it.
  • Most lenders have no issues with transfer of equity transactions.
  • Some lenders are able to lend on 50% of a block.
  • Some lenders will allow you to own the freehold and leasehold in the same block, as long as they are owned by separate legal entities.

If you are seeking some free advice and guidance regarding how you could remortgage your Buy to Let property &/or Residential property and potentially also release some capital at the same time, then contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.

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Residential Remortgage for Divorce – Case Study

The Client: 

Our client was re-mortgaging their marital home as part of divorce proceedings.  During the divorce, they were renting in private accommodation and then once completion of the remortgage had taken place, the subject property would become the client’s main residence and his ex-wife would move out. 

The client was unable to wait for the divorce to be finalised as they required the mortgage offer in place as requested by the courts.  The ex-wife was unable to afford to keep the marital home and the client didn’t want to lose the property.  The client was self-employed and the income evidenced for the last 12 months was failing affordability with many lenders.

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The Scenario:

Upon assessing the application, we identified that part of the land had some commercial elements, therefore we were limited on lenders that we could approach on residential mortgage terms.  Due to the constraints of the divorce proceedings, the client was unable to wait for the title to be amended and split correctly, separating the commercial and residential elements to the property. It became evident the client required a lender that would work on projected figures.

The Solution:

A first mortgage was raised for the client.  The lender we recommended for the client was happy to assess the application taking the clients’ current circumstances into consideration and the lender was happy to assess the remortgage on their residential terms.  This then allowed the client sufficient time to remortgage on better terms later and to split the title once the divorce settlement and first charge mortgage had been finalised. 

The mortgage lender was also happy to use clients projected income figures. The client completed an Accountants Certificate with an explanation from the accountant as to why the income had increased.  The selected lender was happy to proceed, and the client was able to keep their marital home.

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Summary:

Divorce proceedings are naturally usually very challenging and stressful for all parties involved and even more so when a marital home is involved. However, working a Mortgage Broker who has experience in being dealing with these complex and sensitive matters removes a significant amount of stress and enables specialist lenders to be sourced who understand the issues.

If you’re going through a divorce and are seeking some free advice and guidance regarding how the marital home could be potentially remortgaged &/or other properties being purchased with the divorce proceeds, then contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form and one of our Advisors will call you right back.