Scenario:
Our client was a professional landlord looking to refinance a block of flats away from an expensive lender.
The property was constructed of two restaurants on the ground floor and four flats above, all of which were let out.
Challenges:
Due to the commercial premises in the building, a traditional mortgage was not suitable therefore a specialist commercial lender was required.
Solution:
Our broker approached several commercial lenders to source the best rate available.
The bank was able to take a charge against the entire block and offer a far more competitive rate than the existing lender.
Key figures:
Property value: £7 million
Loan amount: £1.6 million
LTV: 23%
Repayment type: Interest only
Product type: Variable
Interest rate: 3.6%