Sustainable Mortgage for BTL Landlord

The Client

Our client, an experienced BTL landlord with a property portfolio in the East of England, agreed an option agreement on a property in Thetford, Norfolk in 2008. An option agreement is a contract between the owner of a property and a potential buyer, giving the buyer the right to purchase the property at an agreed price within a given timeframe.

The Case

The client went on to purchase the property in cash at under market value in May 2021 under the terms of the option agreement.

On approaching Pilot Fish, our client sought to refinance the property with a BTL mortgage and release equity that would further enable him to expand his property portfolio.

At the time of purchase, the property had an EPC rating of D. All landlords implementing Assured Standard Tenancy agreements are required to have a property EPC rating of C or above for new tenancies by 2025.

After a consultation with our commercial team, our client was advised of the proposed legislation and chose to progress with the necessary property upgrades. This then gave our client access to a number of highly competitive mortgage solutions coming to the market designed to support and incentivise landlords.

The Solution

Our commercial team placed a BTL mortgage at 75% LTV, 2.94%, fixed for 7 years. The client was able to release equity from the property and is actively looking to add to his portfolio.