My clients in this instance were a husband and wife who owned a buy to let below their main residence. They were living in a London townhouse where the basement was a separate flat, which they rented out. This flat was valued at £750,000.
They were looking to remortgage the buy to let for a number of reasons. As well as some debt consolidation, they wanted to raise funds to put towards a future purchase. They were looking for a loan of £550,000 on an interest only basis, which worked out at just over 70% loan to value (LTV).
While my clients owned their own business and had a very good level of income, they also had around £90,000 of personal debt. Their rental income was also fairly low and, relative to the amount they were looking to borrow, did not fit most standard high street rental calculations.
The nature of the property itself made this case a complicated one. Thanks to the increased risk and burden, it is generally very difficult to find a lender willing to take on a Grade 1 listed building.
To make things even more challenging, most buy to let lenders shy away from debt consolidation on a mortgage. Many have a cap on the amount they will offer, and some refuse it outright.
These factors meant the best option for my clients was going to be a private bank. As they are not driven by volume business, they are generally able to be more flexible than the high street banks. They are also better equipped to handle complex scenarios as they can afford to offer a bespoke service. At Enness, we have excellent relationships with several private banks, and I got in touch with someone who I felt would take a holistic view of the case.