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Landlord lowers mortgage payment, despite a down valuation disqualifying a re-mortgage approach

A second charge mortgage case study - July 2018

Objective

A client on a high standard variable rate wanted to remortgage their buy-to-let property onto a lower rate to decrease their monthly outgoings.

Obstacle

Obstacle

The problem was that the property had been down-valued and the client couldn’t raise enough with a conventional buy-to-let mortgage to pay off the balance of the existing loan.

Outcome

We were able to use our Private Label Buy-to-Let Booster product to provide a bespoke loan that includes a first charge mortgage from Kent Reliance and a second charge, with rolled up interest, from Castle Trust. The blended rate of the two products was cheaper than the client’s existing variable rate and, because interest on the second charge mortgage was rolled up, this part of the loan was not subject to a rental coverage stress test, so the total borrowing was still covered by the rental income received, even when considering the rental stress test that was applied.

 

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