Buy To Let – Happy Clients

One of the main obstacles with buy to let mortgages can be rental ‘stress testing’. Most lenders carry use stress testing to determine a minimum requirement for rent. The income must satisfy the test for the lender to consider a buy to let case. Often, stress testing makes it very hard to mortgage a property that would have previously had no issues. Problems can arise if you have already got a buy to let mortgage and you would like to remortgage to a different mortgage provider. If the rent is modest vs the size of mortgage you need, you may find it difficult to find mortgage with a new provider. Mortgage trapped!
Recently we had a major example of this. A client with a portfolio was looking to remortgage 2 properties. The rate his existing provider was offering was a 5.09%. This was severely impacting the profit of this property. The rent amount didn’t work with any other lenders stress test. It seemed that he was stuck.
Thankfully, a broad understanding of the buy to let lending market meant we were still able to find a solution.
Almost every lender out there handles a BTL application with approach mentioned above. But there are a few of lenders that don’t work that way and consider BTL applications on an affordability basis. Something that had looked impossible became a stress free application. We secured the two mortgage offers in good time. The new deals are 3.09% fixed rates. The financial advantage of this for my client is massive.

Happy faces

The total mortgage debt of £237,000.
At 5.09% it would be £36,189 in interest over 3 years.
At 3.09% it will be £21,969 over 3 years.

This saved around £14,220 in interest payments over 3 years. Needless to say he is now very happy indeed.

If you’d like to discuss your mortgage requirements, no matter how complex you may think the situation is, get in touch and we can have a chat.

Gavin Burrows
Director – Fifty Nine Financial Limited