Refinance of a 1st charge buy to let mortgage with a 2nd charge bridging loan secured on a luxury property in Surrey just outside of London. The bridging loan funds were used to improve the security property and allowed the clients to increase the yield substantially. The increase in the rental and capital value allowed the clients to refinance both loans. The new property value stood at £3.4 million and the borrowers were seeking 70% Loan to Value.
The borrowers, husband and wife, owned the property jointly and this represented the only rental property they owned so they placed considerable value on finding a cheap long term buy to let mortgage. The husband was self employed and the primary earner so a standard affordability assessment was conducted to ensure they were able to afford any rental void periods as well as continue with their current lifestyle whilst taking out a much bigger mortgage.
Problems to Solve
There was an urgent need to refinance both loans as the clients’ existing lenders had adjusted their lending criteria and no longer had a desire to remain in the luxury residential market. Due to the specialist nature of the property and location – we also had to make sure the right surveyor was chosen to give an accurate representation of the true value of the security property.
We were able to refinance both the first and second charge loans with a specialist Buy to Let lender with a strong appetite for larger residential loans over £2m. This type of loan exemplifies our knowledge and experience in the large loan mortgage sector in the UK.
£2.38 million GBP Loan
5 Year Fixed 3.49%
70% Loan to Value
10 Year Term
Full Interest Only
1.00% Bank Fee