We work with our clients to find creative financial solutions to complex and sometimes difficult financial situations.
On many occasions a client has a very low rate of interest on their mortgage and/or the commercial facilities. In such circumstances, if additional finance is required, it is not cost effective to re-mortgage the competitive interest rate. Therefore a second charge loan on the private residence or commercial property is the solution.
Alternatively it is possible to borrow up to 20% of the value of the private residence or buy to let* whereby no monthly repayments are made. Instead the lender will accept a share of any increase in the property valuation when the loan is repaid. This facility is ideal for landlords to increase their property portfolio, for business ventures, divorce settlements etc. Please note that if the property has not increased in valuation, on a final repayment, only the capital sum is repaid.
fig 1- Traditional BTL Mortgage with a 70% loan to value, 30% equity.
fig 2- Traditional BTL Mortgage with 85% Loan to value, 15% BTL partnership mortgage. 15% equity.
A Landlord with 17 properties all mortgaged up to 75% loan to value wished to buy more properties but had no deposits. In turn it was possible to release equity on all 17 properties up to 85% loan to value, thereby providing a cash sum for deposits to buy more property. Furthermore, as the extra monies were on a second charge basis, the lender required no monthly repayments.