Our client's situation
Our client wanted to expand their property portfolio by purchasing a buy-to-let property. Rather than taking out a buy-to-let mortgage, they planned to release equity from their residential property and use the funds to purchase the investment property outright.
However, their circumstances presented some challenges. The amount of borrowing required was higher than many lenders would typically accept for this purpose, and the client also had existing financial commitments that could limit the options available.
In addition, the client wanted flexibility. They had not yet identified a buy-to-let property and did not want to be forced into linking the purchase of the investment property with their residential remortgage.
Our solution
Our adviser reviewed the client's circumstances and identified a lender whose criteria were better suited to their requirements.
The remortgage application was submitted as soon as the lender's application window allowed, several months before the client's existing mortgage deal was due to end. This enabled the client to secure a competitive rate early while still benefiting from the flexibility to complete when their current deal expired.
The chosen lender was prepared to consider a higher level of borrowing than many alternative lenders for this type of transaction. Just as importantly, they did not require the client to have already identified a buy-to-let property before releasing the funds.
As a result, the client was able to access funds for their future property investment plans while retaining the flexibility to search for a suitable buy-to-let property at their own pace.
This case also highlights the benefits of reviewing your mortgage options early. Speaking to an adviser before your existing deal ends can help you understand the choices available and identify opportunities that may not be available if you leave arrangements until the last minute.
To talk to one of our advisers about your mortgage needs, call us on 08000 38 37 36 or book an appointment today.
This is for information only. Products and rates vary depending on your circumstances, lender criteria, and products available at the time.
Using equity from your home to fund property investment may not be suitable for everyone, borrowing more against your home will increase the amount you owe and may increase the total interest payable over the life of the mortgage.
