Buy To Let Mortgage for Portfolio Landlord
A portfolio landlord, Andrew, who has several BTL’s (Buy to Lets) in the background has called us up with a new project he has found up North.
It is a terraced house divided into 3 separate units, all rented out under 3 separate AST’s (Assured Shorthold Tenancies) and so classed as a multi-unit property. The purchase price of this property is £84,000 and each rental unit is less than 30 sq/m.
The majority of lenders have a minimum value for each unit and also a minimum size and consequently we were very limited to which lender would accommodate this mortgage as an investment of this type is usually aimed at cash buyers. However, after extensive research we found a lender who would accommodate the mortgage of 70% Loan to Value, albeit at a higher interest rate. The monthly repayments would be £352, however, the rental income from the units total £1200 a month and so it would still be a profitable investment which Andrew was happy to invest in.
