Haines Watts in Partnership with Caboodle

• 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

• 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

• 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’)

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.

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.

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.