Expert mortgage advice tailored to you
Call our expert advisers now
08000 38 37 36We're totally impartial and focus on finding the perfect mortgage to suit you. Drop into a branch, call us or go online. We're flexible to fit around you
We're totally impartial and focus on finding the perfect mortgage to suit you. Drop into a branch, call us or go online. We're flexible to fit around you
We're totally impartial and focus on finding the perfect mortgage to suit you. Drop into a branch, call us or go online. We're flexible to fit around you
9th July 2020
Our clients had come in to some money and were keen to start a property portfolio. They acquired their first property with cash and invested further personal funds in order to complete the refurbishment necessary to then rent it out to tenants. Their intention was to then raise money against that property through a mortgage, in order to acquire another rental investment. The scenario faced a number of challenges. Our clients did not have long term experience as landlords, they did not at the time have any consistent form of income, nor did they own their own main residence, all of which tend to be minimum requirements for buy to let lenders. In addition, a key factor was the rental yield of the property. Our clients wished to release as much equity as possible for further investment, but for many lenders, the rental stress test calculations meant they were being offered a lower amount than desired.
We sourced a lender who would offer a buy to let mortgage on a ‘triple borrower – joint proprietor’ basis, meaning there were three people on the mortgage application but only two on the title deeds of ownership. This involved the client’s mother joining the mortgage application; she was in full time employment and owned her own home, which satisfied the issues relating to income and home ownership. Having taken tax advice, she confirmed that through being on the mortgage, but not on the property title deeds, she was not liable for any stamp duty surcharge. Owing to the sum of her personal disposable income, the lender was also able to be more flexible than others with the amount of lending, effectively combining this with the anticipated rental in order to offer the sum of lending required. This was quite a complex scenario and having got their first property tenanted and funds available, our happy clients are well on their way to finding new investment opportunities.
Click here to see the current best buy to let deals.
Alexander Hall recognises the importance of your online privacy. We use technology such as cookies to ensure that you have the best experience on our website, in accordance with our privacy policy. Please let us know if you agree to this.
Performance cookies let us collect information about how the website is used. For example, we may record what pages are visited most. This data allows us to see where we could optimise the website and make it more efficient.
We also host the following third-party solutions, which may set the following cookies:
Functionality cookies allow the website to remember settings such as the screen size, which lets us serve the right content without overloading any network or device capacity.
Strictly necessary cookies allow you to log into your account and view account details without a need to log in again every time you navigate to subsequent page. These cannot be disabled.
To make your experience visiting the Alexander Hall website as simple and convenient as possible we place small data files known as "cookies" on your computer. This practice is used by many websites.
Cookies are created when your browser loads the website. The website sends information to the browser which then creates a text file. Cookies are stored on your device for various periods of time, from as short time as the duration of your browsing session to several months.
Every time you come back to the website, the browser retrieves and sends cookies to the server, which helps to improve your experience of the website by: