We visited a client who was wanting to start and build up a buy to let portfolio. *

He had completed his own research, and he felt this was good for him, and he could make some money from the rental income. The main issue was his income. He had been left some money from an inheritance and the deposit was in place, but his research showed lenders need a minimum of £25,000 as an income before they would allow a buy to let.

With most lenders a minimum income is required even though they base the mortgage on the rental income. Lending rules changed in 2017 and in many cases your level of earned income also influences the buy to let rental calculation. The rules change if you are a basic or higher rate tax payer. Since the rules have changed, a few lenders have removed the minimum income, but you must have and be able to provide some level of earned income, so normal payslips are still needed.

Property value	£95,000
Loan amount	£71,250
Loan to Value	75%
Rate	2.89% Fixed for 2 years
Monthly mortgage payment	£171 on an interest only basis
Arrangement fee	Nil
Valuation fee	£315

* You should seek advice from an accountant before you look to make an income from a property. You will have tax liabilities on this.

Good Mortgage Solutions. Working with you, for you.

A normal working day for us includes helping clients that are buying their first homes.

In most cases, clients come to us having read the issues on the internet and just need some professional advice. This is great for us as we can guide and work through the options with them. In some cases, clients have been to the bank and the mortgage was declined. We had a look through this client’s credit file and couldn’t find anything wrong. So, we needed to look at things in greater detail. The client had very little credit, a mobile phone that was always paid and a credit card with no borrowing.

This gave the client a low credit score which didn’t pass the lenders own internal scoring system. We had to find a lender that was more generous and someone we could talk to personally, so we could explain the situation. The relationships that our advisers have with the lenders enable us to do this.

Property value	£65,000
Loan amount	£58,500
Loan to Value	90%
Rate	2.79% Fixed for 5 years, over a 30 year term
Monthly mortgage payment	£239
Arrangement fee	Nil
Valuation fee	£115

Good Mortgage Solutions. Working with you, for you.

A client came to us after they had found a property they wanted to buy…

Unfortunately, they had not been able to sell their current home. After reviewing the affordability, it wasn’t possible to keep both houses on a residential basis. This limited the options available, but we gave them a few choices. One option was to look at getting a bridging loan until the house sold. But this is normally an expensive option without any time scale of when the home is going to sell. Another option was to look at two mortgages, a let to buy on the current home, raising some money to use a deposit for the new property. This meant getting two mortgages and using two lenders, but by arranging the let to buy they could make a small income until the housing market picked up. *

Let To Buy:

Property value	£130,000
Loan amount	£95,000
Loan to Value	73%
Rate	3.2% No tie in period
Monthly mortgage payment	£252 on an interest only basis
Arrangement fee	Nil
Valuation fee	£300
Rental income	£550 a month. Making an income of £298 a month *

* You should seek advice from an accountant before you look to make an income from a property. You will have tax liabilities on this.

Purchase:

Property value	£165000
Loan amount	£115000
Loan to Value	69%
Rate	1.99% Fixed for 2 years, over a 25 year term
Monthly mortgage payment	£486
Arrangement fee	Nil
Valuation fee	£300

Good Mortgage Solutions. Working with you, for you.

This client approached us with an issue with her bank.

She was looking to buy a new property, but her own bank had down valued the property and charged her a valuation fee. A number of lenders now offer mortgages without any valuations, and we agreed to review the mortgage and find a new lender who would not charge another fee for the mortgage.

Property value	£100,000
Loan amount	£95,000
Loan to Value	95%
Rate	3.49% Fixed for 2 years, over a 25 year term
Monthly mortgage payment	£474
Arrangement fee	Nil
Valuation fee	Nil

Good Mortgage Solutions. Working with you, for you.

We had a client approach us as her husband works in Iraq. He has a rolling 12-month contract, and is paid in US dollars.

In most cases this is a non-starter, lenders are not happy with people earning non-UK taxable income, but we were able to source a mortgage with a high street lender that allowed us to do this. We needed a lot more information, including his contract, UK bank accounts and even a copy of his CV to show he had worked in the industry for a long time.

Property value	£600,000
Loan amount	£250,000
Loan to Value	41%
Rate	1.99% Fixed for 5 years, over a 15 year term
Monthly mortgage payment	£1,607
Arrangement fee	£999 added to the loan
Valuation fee	Nil
Legal Fees	Nil

Good Mortgage Solutions. Working with you, for you.

We were approached by a client who wanted to remortgage her home and raise some extra funds.

This client only had one year of accounts. She had equity in the property, but her existing mortgage company would not allow her to raise the extra funds. Although one year of accounts is never enough with some lenders, others are OK with this if they feel you are in a profession that you understand.

Property value	£250,000
Loan amount	£100,000
Loan to Value	40%
Rate	1.75% Fixed for 2 years, over a 10 year term
Monthly mortgage payment	£908
Arrangement fee	Nil
Valuation fee	Nil
Legal Fees	Nil

Good Mortgage Solutions. Working with you, for you.

We were approached by a client looking for a new mortgage to buy their first home.

Their Income was based on a basic earned salary, family tax credit and child benefit. They did not think they would be able to get the house they wanted using this income. But we were able to find a mortgage with a high street lender that not only was able to secure the property, but was also below the budget they had given me. They were pleased that their new mortgage was a lot cheaper than their existing rent.

Property value	£124,995
Loan amount	£112,495
Loan to Value	90%
Rate	2.69% Fixed for 5 years, over a 30 year term
Monthly mortgage payment	£455 - This was £95 cheaper than the rent they paid
Arrangement fee	Nil
Valuation fee	Nil
Legal Fees	Nil

Good Mortgage Solutions. Working with you, for you.