{"id":595,"date":"2022-07-05T15:54:59","date_gmt":"2022-07-05T14:54:59","guid":{"rendered":"https:\/\/holidayletmortgageuk.com\/?post_type=case-studies&p=595"},"modified":"2022-07-05T15:55:00","modified_gmt":"2022-07-05T14:55:00","slug":"residential-remortgage-holiday-let-purchase-case-study","status":"publish","type":"case-studies","link":"https:\/\/holidayletmortgageuk.com\/case-studies\/residential-remortgage-holiday-let-purchase-case-study\/","title":{"rendered":"Residential Remortgage & Holiday Let Purchase \u2013 Case Study"},"content":{"rendered":"\n

The Client:<\/strong>
Our client was a UK citizen who already owns one Holiday Let property as well as his own residential property and was about to complete on another Holiday Let property. The client works as a Train Driver on a good income, with both basic plus overtime pay.<\/p>\n\n\n\n

The client had Bridging Finance in place against his own residential property and used the funds to buy his first Holiday Let months earlier. He was wishing to now pay off the more expensive Bridging Finance (\u201cexit the bridge\u201d) with a remortgage on his residential home as well as secure a new Holiday Let mortgage for the new purchase.<\/p>\n\n\n\n

Contact us today to speak with a specialist Holiday Let Broker<\/a><\/strong> to discuss how we can assist you<\/em><\/p>\n\n\n\n

The Scenario:<\/strong>
The client had sufficient equity in his residential property to remortgage and release sufficient equity for the deposit of the new Holiday Let property. However, before contacting us, the client had been trying for several months with other Brokers to secure the funding but had been unsuccessful. He has a high debt to income ratio and this was most likely the reason he had been struggling as he needed the equity from his residential to act as the deposit for the new Holiday Let.<\/p>\n\n\n\n

The Solution:<\/strong>
Being a whole-of-market Broker, we have the knowledge to know that some Lenders internal credit scoring systems allow an application to be considered even where a client is highly \u201cgeared\u201d \u2013 i.e. high debt to income ratio. So long as the credit score passes and the client have maintained their credit agreements to a satisfactory level, certain Lenders will still consider an application. In this particular instance, we were able to use a High Street Lender who accepted the client\u2019s residential remortgage.<\/p>\n\n\n\n

For the Holiday Let purchase, since the client already owned one and has a good income, we were able to secure him the best deal on the market for this, which fitted the Lender\u2019s criteria perfectly. It was also beneficial that the client already has the onward purchase resolved as that can often hold up residential remortgages, as lenders\u2019 wish to know the specific details etc.<\/p>\n\n\n\n

Discover our Holiday Let Mortgage Broker<\/a><\/strong> services.<\/em><\/p>\n\n\n\n

Summary:<\/strong>
When trying to remortgage a clients\u2019own residential home, it can be often be difficult when the client owns multiple properties and has a high debt to income ratio. However, options do exist, especially if all existing credit agreements have been well maintained.<\/p>\n\n\n\n

Key things to consider for Residential Remortgages when raising funds to buy another property:<\/p>\n\n\n\n