Let-to-buy mortgage for investment banker unable to sell home in time to complete on new purchase
Key features:
- Let-to-buy mortgage arranged to ensure client could complete on new purchase without selling home
- Personal income from partner used to secure larger buy-to-let mortgage
- Incredibly cheap fixes for both residential and buy-to-let mortgages
Our client
Our client was an investment banker who had found a property he wanted to buy. He had put his house on the market but was unsure he would sell it in time to have sufficient funds to complete the deal. He did not want to take a bridging loan and asked what his options were.
How did we help?
Trinity's broker suggested that he keeps his existing property and releases some of the equity to use as a deposit for the onward purchase. He could then keep his home as a long-term investment and let it out.
After permitting us to arrange a buy-to-let, we did the calculations, and the rental income was not sufficient to raise the funds he needed. His income was also not enough to cover both mortgages and be used to top-up the short rent on the buy-to-let mortgage. As a solution, his partner was put on to the buy-to-let mortgage application, and her income was enough to boost the mortgage and make up for the rental income shortfall.
What were the rates?
£995,000 residential mortgage for new purchase at 85% loan-to-value
A 1.64% rate fixed until 30/06/2026, and after the fixed period, it reverted to the banks 3.59% standard variable rate. The overall cost for comparison was 3% APRC. The arrangement fee was £1,499, and early repayment charges applied.
£350,000 interest-only buy-to-let mortgage at 70% loan-to-value
A 2% rate fixed until 31/05/2023, and after the fixed period, it reverted to the banks 4.59% standard variable rate. The overall cost for comparison was 4.3% APRC. The arrangement fee was £1,795, and early repayment charges applied.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation.
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