A London landlord remortgaged two flats in the same block. One was for £400,000 at 73% loan-to-value (LTV) and the other for £350,000 at 70% LTV.
Both were switched to five-year fixed rates at 4.09% with a 1.5% fee. The landlord used equity released in the remortgage for further investment.
David Whittaker (pictured), managing director at Mortgages for Business, said: “The product suited the client not only because it’s priced very competitively but fixing over five years will provide him with some protection against future rate rises.
“Whilst rental income was not a limiting factor in this instance, a key feature of the product chosen is the favourable rent to income (RTI) calculation of 125% at pay rate (4.09%) instead of the common average of 125% at 5% which means it works well for high value, low rent properties.”
Both deals were processed from offer to completion in 10 working days.
Axis Bank piloted its buy-to-let offering for three weeks in early April exclusively with Mortgages for Business prior to launching with Complete FS in early May. Other partners, including TBMC, are scheduled to go live soon.
Andrew Ferguson, head of buy-to-let at Axis Bank, said: “It’s great to get two transactions under our belts so quickly and confirms that our processes are working well. It’s good to be working with a specialist like Mortgages for Business who have really helped to support us through the initial administration, including working with valuers and lawyers.
“The pipeline is growing nicely and we look forward to completing more deals very soon. We are delighted with the interest received so far from brokers and will continue to focus on making the broker journey as smooth as possible.”
