Haines Watts in Partnership with Caboodle

Haines Watts in Partnership with Caboodle

Welcome to Caboodle Finance. We are a longstanding client of Haines Watts and are working in partnership with them to introduce our services to other business owners and like-minded individuals, who may need help and advice with all types of residential property finance.

As an experienced and trusted mortgage broker our core business is arranging mortgages and finance secured against all types of residential property (owner occupied and rental properties). We also have connections and relationships with specialists in many other markets too.

Our core products are:

  • Residential mortgages (property you live in)
  • Second home mortgages (property you stay at from time-to-time, but it is not your main residence)
  • Buy to Let Mortgages (property you rent out to somebody else on a medium to long term basis I.e. 6-12 month tenancy agreement) – This can be mortgages for individuals or to limited companies
  • Holiday Let Mortgages (property you rent out to somebody else on a short-term basis I.e. a week or two at a time)
  • Second Charge Mortgages – Loans secured on property which are separate to and do not affect the existing mortgage
  • Short-Term Bridging / Development Finance – Used for people self-building a property, those looking to move before securing a buyer for their current property or those situations where a traditional mortgage is not suitable or available

You will be able to navigate around our site to get more information about the specific product(s) of interest, or give us a call to have a no obligation chat regarding your circumstances and requirements. You can also see what previous customers have had to say about our service via our testimonials page.

We have detailed below some of the benefits of working with a broker like Caboodle Finance and included some brief case studies to give you an insight into some of the many and varied scenarios we have assisted with in the past.

Mortgages

The advisers at Caboodle Finance have many years of experience and our experts have in-depth knowledge in some of the more intricate and challenging areas of the mortgage market, so we can accommodate many situations and requirements.

We have access to an industry leading sourcing system which works in real-time to accommodate any changes to products and criteria as they happen. This has been a huge benefit in recent months due to the volatility of the mortgage market and available products.

Click here to see some of our residential mortgage case studies.

Buy to Let Mortgages

We help existing or new landlords to either purchase or remortgage properties they intend to rent out. Although there are many different types of buy to let mortgage the main two categories are ‘personal buy to let’ which are for properties owned in a personal capacity or ‘limited company buy to let’ which are for properties owned and held within a limited company.

Although we can provide advice and recommend suitable products in relation to the different types of mortgage available we do not give advice regarding which solution is best for you. However, Haines Watts have a wealth of experience in this area and as they are likely to know you and your existing business, they may be well placed to advise which ownership structure will be best and potentially the most tax efficient.

Click here to see some of our buy to let mortgage case studies.

Second Charge Mortgages

Often referred to as ‘secured loans’, this type of mortgage is arranged separately to the existing mortgage on a property and will be with a different lender.

Why might you consider a second charge mortgage, or why might one be recommended to you as the best solution to meet your requirements:

  • There are generally no restrictions to the loan size based on income multiples, unlike traditional mortgages which are broadly based on that calculation
  • You may have a good existing mortgage deal or early repayment charges which prevent remortgaging being the best solution
  • You may have a recent credit history or current credit status that would result in an inferior mortgage deal if the existing one was moved
  • You may currently have an interest only mortgage but can’t remortgage on interest only due to lender restrictions or because switching to repayment would be too expensive
  • The purpose of additional monies required may not be acceptable to mortgage lenders

People often ask why somebody would choose to take out a second charge mortgage. At Caboodle we have helped many people in different situations with their requirements, but the main reasons a second charge mortgage has been recommended are:

  • Debt consolidation
  • Home Improvements
  • Clients with complex income(s)
  • Loan size not always restricted based on income multiples
  • Lending beyond state retirement age (subject to occupation)
  • Loans for business purposes (although not ‘cash injection’)

Click here to see some of our second charge mortgage case studies.

Case Studies

Mortgages

Case Study (1) – Property purchase for family member to use

Client wanted to buy a property for her son to live in whilst he was at university rather than pay rent for 3-4 years. She bought the property in her personal name as a ‘second home’ (otherwise known as a ‘home for a dependant relative’).

As the property was not being rented out this was based on her personal income, as it was sufficient to support the mortgage required in addition to her existing residential mortgage.

Case Study (2) – Loan for Business

Client was a builder and wanted to raise capital to build a property on a plot of land he owned.

Rather than take out bridging finance, a development loan or a self-build mortgage, we arranged a remortgage of the clients main residence to raise the capital required to progress the building project.

Case Study (3) – Mortgage obtained using most recent year of accounts only

Client was self-employed with a limited company and although his business had been running for a number of years and the most recent year at the time showed a healthy business, the turnover, profit and his declared income in the previous had been impacted by Covid.

Although many lenders would only use an average of the two years declared salary plus dividends, which pulled the mortgage capacity down, we found a lender who based their mortgage decision on the most recent years’ accounts meaning the client could obtain the level of mortgage required and purchase the property he wanted.

Buy to Let

Case Study (1) – Switching Buy to Let property from personal ownership to Limited Company

We had an existing client who had built up a small portfolio of rental properties, all of which he owned in a personal name.

Following some tax advice (from his accountant) he decided he would be much better off in the long-term switching the ownership of the properties into a limited company and we were able to assist with the process of remortgaging the properties on to the correct type of mortgage (limited company buy to let), and at the same time raise the requisite additional capital he required to pay the associated stamp duty and CGT.

Case Study (2) – Purchase of Buy to Let property with the help of an inter-company loan from an existing business

Husband and wife jointly owned a successful business and wanted to purchase some buy to let investment properties, but did not have the liquid funds for the deposits required.

They set up a new limited company in their joint names which would own the property assets and they were able to use an inter-company loan from the existing business to the new company, to use as the deposits for the buy to let properties. We then assisted with the mortgages to help purchase the properties with a lender who would allow the deposit funds from this source.

This saved them having to draw the funds out of the existing business as personal income, which would have incurred a tax liability.

Case Study (3) – Remortgage for personal use

Clients owned their main residence and two buy to let properties, all of which had mortgages on them. They wanted to raise some capital as both of their daughters were getting married within 12 months of each other.

They could not raise the capital via a remortgage or second charge mortgage on their home as although they still owned shares in a business they were semi-retired and only drew a modest income from the business. However, we were able to remortgage their two buy to let properties as the rental income was strong enough, thereby raising enough capital for the weddings. This was also done on an interest only basis to keep the higher monthly mortgage payments to a minimum.

Second Charge Mortgages

Case Study (1) – Avoid Early Repayment Charges (ERC’s)

Clients were 3 years into a 5-year fixed rate and had significant ERC’s due to the size of the mortgage. They wanted to raise £75,000 to consolidate some credit and undertake some improvements to the property.

The mortgage lender would not offer a further advance so we arranged a second charge loan for the clients to avoid them having to pay the ERC’s, with their intention being to repay the second charge when they remortgage at the end of the fixed period.

Case Study (2) – Loan for Business

Husband and wife who are co-directors of a limited company want to buy the business premises they had been renting. They had a commercial mortgage agreed by their business bankers but need to raise the deposit for the remainder.

We arranged a second charge for them in their personal names against their residential property to provide this deposit, which together with the commercial mortgage allowed them to complete the transaction.

Case Study (3) – Interest Only Mortgage

Clients were in their late 50’s and had an interest only tracker mortgage for around £175,000 at 0.25% above base. They were looking to raise an additional £40,000 but did not want to sacrifice the mortgage deal they currently have as they intend to downsize to clear it in due course. They could not convert the mortgage to capital repayment due to term/affordability restrictions so we arranged them a separate second charge leaving the existing mortgage as it is.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. There will be a fee for secured loan advice and the exact fee will depend on your circumstances. The fee is only payable on completion and can normally be added to the loan. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2023 Caboodle Financial Services Ltd