Our Case Studies
Our Case Studies £2.6 million remortgage for Buy to Lets bought through former trading limited company

£2.6 million remortgage for Buy to Lets bought through former trading limited company

Need a large Buy to Let remortgage? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.

Case Profile

Our client wanted to remortgage two Buy to Let properties with the objective of reducing the current high interest rate. However, finding a mortgage was a challenge, as the Buy to Let properties had been purchased via the client’s former trading company and the client had a low taxable income.

The two Buy to Let properties were purchased, with the proceeds from the sale of the client’s former business, in cash. The client later went on to remortgage these properties, but only found a mortgage option with a very high interest rate.

The challenge of this case was that most high street lenders are unwilling to lend on properties, on a Buy to Let basis, that have been bought through former trading limited companies. If the company had been a Special Purpose Vehicle, solely dedicated to the purchase of property, the case would have been simpler. In addition, the client’s taxable income was low, which most lenders would not be happy to take a view on the case.

Solution

Using our access to an extensive range of private bank contacts, we were able to arrange a bespoke remortgaging solution for the client. We sourced a lender who was prepared to accept the client’s future taxable income. The rental income they would receive going forward would be substantially higher, as any losses from it would be exhausted. In addition, the client is planning to draw a higher income from another business, which will also be used to service the new mortgage.

The client was happy with the solution and they were able to successfully remortgage both Buy to Let properties at a much lower rate.

Deal Highlights

Loan amount:£2,600,000
Rate:2.62% (2.25% plus 3 month Libor (currently 0.37%))
LTV:47%
APR:Overall cost for comparison 2.62% APR representative variable
Term:10 years
Type:Interest Only (with capital lump sum repayments)
Loan purpose:Remortgage
Lender’s arrangement fee:1% of loan amount
Early repayment charges:None

Notes

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 2.62% APR representative variable based on 10 years at 2.62%. Lender’s arrangement fee of 1% of the loan amount. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage.

Return to Our Case Studies

This Month’s Top Fixed Rate

Fixed rate
Initial rate: 1.35%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.46%

Get This Rate

This Month’s Top Variable Rate

Variable rate
Initial rate: 0.97%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.37%

Get This Rate

Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

Latest Articles/News

Case Studies

Are you looking to remortgage your home? We have the banking contacts to pr…

Latest/Related News

Are you aware of the latest requirements for self-employed mortgage applica…

Press Release

States proposal to waive document duty on bonds hailed as a victory for mor…

Press Coverage

“Victory” for first time buyers…

LML Brochure

Download our brochure to find out more about Largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials

Close

Live chat with
our team now

Chat

LargeMortgageLoans.com