Buy-to-Let Deposit Funded via Second Charge on Residential Home
£85,000 · 10 years · 7.45% fixed. An aspiring landlord had found an ideal first investment property but lacked a sufficient cash deposit.
The Client
Aspiring landlord
The Challenge
An aspiring landlord had found an ideal first investment property but lacked a sufficient cash deposit. He had substantial equity in his own home and a competitive fixed rate with three years remaining. A second charge on his residential home would release the deposit he needed without disturbing his residential mortgage.
Our Solution
Doulton placed a second charge of £85,000 on the residential property, releasing the BTL deposit. First charge consent was obtained within four working days. The BTL mortgage was simultaneously arranged on the investment property. Both transactions completed within the same week.
The Outcome
Investment property purchased. BTL mortgage in place generating rental income that more than covers the BTL mortgage cost. Second charge on residential home serviced from the rental surplus. Residential fixed rate fully preserved. Key highlights: BTL deposit funded without touching residential fixed rate; Both transactions completed in the same week; BTL rental income covers BTL mortgage - second charge serviced from surplus.