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SPECIALIST LENDING CASE STUDIES - APRIL 2020

Specialist residential, buy-to-let and second charge mortgages

Here a Brightstar we continue to work together with our valued partners are would like to share a few recent examples of the solutions we have been able to proivde for their clients:

Specialist residential mortgage case studies:

  • 85% LTV Concessionary purchase – client lived together with his ex-partner, with the property purchased in her sole name. However, the client had provided the deposit for the purchase. They have now separated and the client is buying the property from his ex-partner as a concessionary purchase, with no deposit to be provided. This has been offered at a rate of 2.99% on a 2-year fixed deal, even with another property in the background.
  • 85% Debt consolidation – clients with total unsecured debt that was more than their combined salaries. This meant the application was failing debt to income ratio calculations with most lenders. However, Brightstar were able to complete on a 2-year fixed rate of 3.60%. This enabled the clients to get their finances back under control.
  • We helped a client that is currently furloughed to raise capital on an unencumbered property at 43% LTV. The funds were raised to purchase a BTL investment property so they could start to build a property portfolio which would generate an additional income stream for their retirement. The client wanted a 5-year fixed rate which we were able to secure for them at a rate of 3.19%
  • We were approached by a couple of young FTB’s looking to purchase their first property together. Unfortunately, they had recently run into a few credit issues with two small defaults registered against their names. Even with the limited deposit they had, we found a solution at 95% LTV and were able to offer them a 5-year discounted product at a rate of just 2.99%.

 

Complex buy-to-let mortgage case studies:

  • 75% LTV Capital Raise: Client was re-mortgaging to raise funds to pay off a Bridge and to also purchase another BTL property. The security was valued by AVM at £200,000. We were able raise £165,000 on the new mortgage, at a fixed rate of 3.34%
  • 75% LTV Portfolio Finance: The client wanted to purchase two properties from their Mother, through a newly set up SPV. Each property was valued by AVM at just over £500,000 and we were able to offer a rate of 3.34%. As a result of the solution and help provided by Brightstar, the client has advised their broker they are looking at doing the same for eight more properties with total borrowing in excess of £5 million.

 

Second charge mortgage case studies:

  • 75% LTV Debt Consolidation. A married couple, with unsecured debts that were becoming difficult to manage each month needed to reduce their monthly outgoings. Both applicants were still working and were able to provide letters from their respective employers, being key workers. They had approached their mortgage broker for a further advance but were turned down. Their Broker referred them to Brightstar to discuss a 2nd charge mortgage. We found a lender that could help, could complete using a desktop valuation and secured a 2-year fixed rate of 4.7%, providing some much need breathing space until they could re-mortgage with their broker.
  • 72% LTV Home Improvements. A widowed applicant required funds to complete home improvements to her home, which was owned in her sole name but shared with her new partner. However, she did not have the income required to service the debt on her own. By adding her partner on to the 2nd charge mortgage, we were able to raise the funds needed, whilst the property remained in her sole name.

 

*Please be aware! Interest rates and loan to values may vary dependant on case specifics.

 

FOR INTERMEDIARIES ONLY – NOT INTENDED FOR PUBLIC OR CONSUMER USE