BTL remortgage and resi purchase for returning UK expat airline exec

Area
Hertfordshire
Capital Raised
£285K

The Scenario

Our client is an airline executive who’d been working in Kuala Lumpur but had returned to the UK with his wife four months’ previously to take up a new role in London. They were planning to buy a home in Hertfordshire.

He already owned two buy to lets in London, and aimed to remortgage one of them, valued at £480K, to raise the deposit they needed.

The challenge: he had already left his previous employer seven months previously: under the terms of his leaving package was not allowed to start work with a competitor company for six months.

The Solution

Surprisingly, the BTL remortgage was the most challenging to set up: most BTL lenders want clients to have been resident in the UK for at least three years, certainly for the past two years.

If we were to avoid our client being hit with an expat rate there was in fact only one lender who would accept him.

On the residential mortgage, lenders don’t like long gaps in employment. On the basis of their published criteria, the lender we were recommending wouldn’t have considered our client’s application: when the application was being submitted he’d only been with his new employer for a matter of weeks.

Fortunately, private lenders are able to be more flexible than high street banks. And our ongoing relationship with the underwriter meant that we were able to reassure them that the gap in employment was in fact due to our client’s desirability within his employment sector.

Additional issues:

1 Optimising deposit payment: Our client was looking to raise as much as possible as a mortgage on his purchase, intending to hold back some funds from the BTL remortgage to cover renovations.

But we showed him how the cost of going over the lender’s rate threshold into their above 80% LTV rateband would cost him an additional £6,000 in interest over the five years of his fixed mortgage term

As a result, our client decided to put in an additional £17K as deposit to qualify for the better rate.

2 Accessing the surveyor’s comments: We secured free valuations on both properties, adding up to a considerable saving for our client.

There’s no process for lenders to share the results of free valuation reports, but we rang to ask if there were any surveyor’s comments.

The issue of possible flood risk had been raised on the purchase property (though it wasn’t a bar to lending). We were able to pass this on to our clients as a guide for their own enhanced valuation survey they were commissioning.

3 Fine-tuning drawdown: Our client expected to access the BTL remortgage funds straight away. We persuaded him to delay drawdown until a week before completion on the purchase was due, to save on interest costs.

A five-year fixed rate at 2.04%.

Review of mortgage advisor Luther Yeates Dec 2019

Jennifer Stevenson & Isla Geddes

Editorial Content Team

Bristol

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Absolutely drop-dead efficient content creators and website managers

Jack Spillane

Finance Broker

Bristol

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Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

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Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

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Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

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Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

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Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

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Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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