Refinance and Capital Raising – Total Loan £508k
The situation: We were approached by the son of an existing client to refinance a flat he owned in London. The aim was to pay off existing lender and raise some additional capital for plans he had in place. There were a couple of key issues in that the rent did not support the level of borrowing required in terms of the lenders stress tests and due to not being on the voters roll and not being able to prove his address due to correspondence all being sent to the business address.
The solution: The father was added to the loan request and his salary was taken into account to support the shortfall on the rental stress. The client has been renting out and managing properties for over ten years, had a good credit history and good supporting income. The total loan was £508,250.00 on an interest only basis for five years.