Clients proposing to purchase second home at 85% LTV while keeping holiday home
This professional couple wished to purchase a second detached residential property while retaining their existing property as their holiday home.
Seeking a mortgage of £671,500 on purchase price of £790,000 so 85% LTV.
Most lenders would not lend on a second home and others have LTV restrictions.
Our clients were a married professional couple, he a senior manager in information security and she in banking, with an existing residential property.
What was needed
The clients wanted to purchase a second residential detached house, to live in and make use of their existing property as a holiday home, working from the holiday home when necessary.
What was the challenge?
The purchase price of the new property was £790,000 and the clients wished to obtain a mortgage of £671,500, an 85% loan to value ratio (LTV).
(The LTV is the ratio between the value of the mortgage and the value of the property. This is important because it is an element applied when assessing lending risk that lenders consider before approving a mortgage.)
Most lenders would not consider offering a mortgage on a second home or not at this LTV.
How we provided the solution
Joanna Ziou, Associate, discussed the couple’s mortgage needs with them in detail. She then researched the lending market until she pinpointed a lender that would be willing to lend on a second home, at the 85% LTV.
The clients were thrilled with the outcome as their successful mortgage application enabled them to adopt the lifestyle they were seeking.
What was the rate
The interest rate was 2.46% fixed for 2 years.
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