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Accidental landlord - Steph's story

Steph was relocating for a new job with a salary of £40,000 per annum. She needed to purchase a flat close to her new job but wanted to keep her old property as an investment - and in case things didn't work out.

undefinedSteph's current residential property is worth £200,000 with a mortgage of £110,000. Although she has no previous experience of being a landlord, Steph plans to let her current property out and is looking to remortgage it with a Buy to Let mortgage. This will enable her to raise some funds towards the deposit for her new flat.

As a first time landlord, Aldermore remortgaged her residential property to a Buy to Let to 75% of the property value (loan amount = £150,000), enabling her to raise a deposit of £40,000 towards the new flat. If Steph doesn't stay in her new job she then has the option to remortgage the Buy to Let mortgage back to a Residential mortgage at a later date so that she can move back into her old flat.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Steph's mortgages look like:
 Property price value  £200,000
 Mortgage amount  £150,000
 Loan to value  75%

 

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  • Buy To Let
  • Case Study
  • Intermediaries

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