I regularly deal with cases in which my clients’ have complex background issues, meaning they struggle to secure finance. However, I am also able to assist with simpler cases by virtue of Enness’ access to every lender on the market. I was recently able to do this for a client looking for a like-for-like buy to let remortgage of his rental property.
My client’s current mortgage had been arranged by Enness, and their positive experience meant they were happy to return to us when they needed to arrange further finance for their buy to let property.
My client’s property was in South London and had been valued at £1.3million. There were no explicit complications with this case; my client simply wanted to secure the most competitive rate, and as Enness Mortgages have access to every lender on the market, he felt we would be able to secure him the best deal.
Their current mortgage product was on a rate of just over 2.5%. Unfortunately, their current lender had stopped lending—and their fixed rate was set to expire, meaning my client would revert to an expensive Standard Variable Rate (SVR) of 4.99%. I, therefore, needed to find a lender offering a competitive rate quickly, to prevent my client from overpaying.
The rental income from this property was not sufficient to approach many buy to let remortgage lenders, as changes in affordability calculations have come into effect since my client last financed his property. My client was also a higher rate taxpayer.
Fortunately, my client had disposable income in the background, which meant they were a good candidate for top splicing. Top splicing is where the lender uses a borrower’s personal income, in addition to their rental income, in order to calculate the amount needed for the loan.
My client’s personal income meant we could meet the affordability criteria and secure a fantastic rate. The lender I approached is quick and efficient, and I was able to secure my client a fantastic 2-year fixed rate of 1.54%.