This week's case study highlights how we helped a recent client to achieve both their dream family home purchase, and to retain their previous home as an investment property to let out.
Our clients' challenge
The clients found a dream home which would allow them to have a larger family home. They also owned an existing property, a flat that was above commercial premises.
They needed to move quickly and wanted to arrange a buy to let mortgage on the existing property to release funds for the new property, therefore allowing them to retain their previous home as an investment property.
Before meeting us, they met their existing lender and a couple of major high street banks but were advised the anticipated rental income on their current property was too low to get the loan amount required. These lenders also told them that because it was above commercial premises, they could not lend on the property anyway.
Alexander Hall's solution
Alexander Hall has access to underwriters at lenders who can use the landlord's other income as part of the affordability assessment on buy to let mortgages, where the rental income is not sufficient by itself. This is known as "top slicing". We sourced this option for the client to cover any rental income shortfall.
The lender we sourced was able to agree to the entire £675,000 loan amount - and at a market leading rate of 1.89%. A short while later we had the mortgage offer with the clients' solicitor, so the funds could be ready in good time for the onward purchase.
