The deals were processed for a London landlord who was looking to raise finance for further investment.
Remortgages of £400k to 73% LTV and £350k to 70% LTV were offered on two flats in the same block, both at a rate of 4.09% fixed for five years, with a fee of 1.5%.
David Whittaker, 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.”
Despite a General Election, two Bank Holidays and half-term the deals were processed from offer to completion in just 10 working days which is good news for brokers looking to place cases where time is of the essence.
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, with other partners, including TBMC 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."
