Our clients were homeowners looking to rent out their existing residence and purchase a new property. Additionally, they wanted to raise capital to top up their deposit pot as well as clear some unsecured debt. Additionally, the clients wanted to know how much they could raise on their existing property initially as this would allow them to narrow their property search significantly.
We were able to secure both the initial Buy to Let remortgage and the onward residential purchase mortgage with the same lender. The BTL remortgage facility was agreed subject to memorandum of sale on the new purchase thus giving the clients peace of mind and a 6-month timeframe to source a new home. This worked for the clients perfectly as the property market at the time was volatile with significantly increased demand making property sourcing a tad more difficult than normal.
The clients approached Specialist Mortgages as they faced several issues. Firstly, not all banks allow Let to Buy applications. This scenario is where a mortgage is raised on a client’s current residence which will then be rented out. Secondly, not all Let to Buy lenders allow debt consolidation over and above the capital raising for the deposit top-up.
“We packaged the case correctly and secured the initial offer for 6 months to ensure the clients had plenty of time to source their dream home.”
Furthermore, a significant number of banks want the two mortgage offers to be secured simultaneously whereas our clients wanted the initial BTL refinance on paper so they could accurately work out their affordability for the new purchase.
Our role as the broker was to find a flexible Let to Buy lender that would allow all of the above. We approached a specialist bank with whom we have an existing relationship and discussed the scenario directly with our dedicated development manager and internal underwriter.
We packaged the case correctly and secured the initial offer for 6 months to ensure the clients had plenty of time to source their dream home.
The clients were able to raise £300k against their current residence due to the equity available. We were able to secure the initial offer on the property subject to memorandum of sale being secured for the new purchase.
This provided the clients with clarity and peace of mind as they knew exactly how much they had available in terms of deposit. Additionally, the clients were able to clear £26,000 in unsecured debt saving them £541 per month.
They have now moved into their dream home while retaining their previous residence as an investment property moving forward. We look forward to doing business again in the future.
