Key Facts
- Five interest-only mortgages – two residential and three buy to let
- Property combined value – £10.4m
- Mortgage amount – £6,514,500
- Residential – 75% LTV; buy to let – 65% LTV
- Client – UK resident, Chinese national
- Residential: 2.09% 2-year fixed rate; buy to let 2.59% 2-year fixed rate
In every crisis, there’s an opportunity – so the saying goes.
The world currently faces unprecedented levels of uncertainty from the Covid crisis, but property markets are still moving, and many investors are finding it’s a favourable time to expand portfolios. In the UK, this has been helped by a temporary cut to stamp duty, which applies to investors, as well as residential buyers. An expected increase in the number of people unable to buy homes, and therefore reliant on the private rented sector is also driving expectations of a buoyant buy to let market in the coming months and years.
In this case, our client was an investor owning £10.4m worth of property in the UK, predominantly in London and the surrounding commuter belt. The properties were a mixture of residential and buy to let, but all were mortgage-free.
He wanted to expand his buy to let portfolio and raise the maximum amount possible from his properties in order to do so. However, the client wanted to take the funds without having a purchase lined up so that he could move in the market as a cash buyer.
This is difficult to achieve with many lenders because they usually want to know the exact purpose of loan money. It is especially tough on high loan sizes such as this one, where the client was looking to raise around £6.5m. A further complication was that most of the client’s income came from his own company in China.
Income from outside the UK can be problematic with lenders, with some countries more difficult for affordability purposes than others.
However, Enness thrives on creating solutions for clients with complex requirements.
The required loan was secured in full through five different mortgages with the same lender. The deals were on excellent rates and on an interest-only basis to increase the cash flow of the client.
Most importantly, the full loan was able to be drawn down without needing an ongoing purchase.
We were able to meet all of the client’s requirements, enabling him to expand his portfolio as a cash buyer, thanks to mortgages arranged by Enness.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
