Lenders are still lending: releasing £100K equity on remortgage of BTL to be ready to purchase

Area
Slough
Capital Raised
£280K

The Scenario

Our client approached us to talk about remortgaging a 3-bed BTL in Slough as it was approaching the end of its fixed-rate term.

He had a current mortgage of £180,000 on the property, which was now valued at £375,000. He was looking to take out as much equity as possible, to purchase another rental property. But he didn't know how much he'd be able to raise because lenders apply different stress tests to rental income.

The Solution

Interest rates were super-low. Even as lenders were talking about putting a freeze on site visits for valuations, we sourced a lender who would offer 75% LTV, and we were confident this application would qualify for their online Automated Valuation Model (AVM) valuation, so he wouldn't have to wait for in-person site visits to resume. 

We recommended a five-year fixed term at an annual rate of just of 2%, which increased the equity release from £40,000 to £100,000. Which gives our client sufficient funds to look at buying two further investment properties, rather than one, to meet what he's predicting will be an increased demand for rental accommodation in an uncertain property market. 

Read our blog: Online property valuations during Covid 19 business conditions

 

Jack Spillane

Finance Broker

Bristol

0117 959 5094

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

0117 959 5094

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

0117 403 4324

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

0117 959 5094

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

0117 959 5094

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

0117 205 0214

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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