Identifying Missed Opportunities:
A client approached Advantage FS after consulting with three other mortgage brokers regarding a Buy-to-Let (BTL) property purchase. The client, with a £70k annual income, no outstanding debts, and an existing £90k mortgage on a £300k property, was aiming for a 15% deposit on the new BTL investment.
Advantage FS Unveils Strategic Options:
While exploring the client’s financial situation, the Advantage FS team identified two key missed opportunities:
Leveraging equity in other properties: While the other brokers hadn’t considered this option, Advantage FS proposed a small top-up mortgage of £30k from the client’s existing lender on another equity rich property the client already owned. This would increase the deposit to 25%, potentially unlocking better interest rates and loan terms. This risk-based approach required careful analysis but could offer significant advantages, such as higher choice of lender and lower rates.
Exploring Limited Company Structure:
Advantage FS also suggested investigating the forming a Limited Company (LTD) for the BTL purchase. Whilst this would present higher interest rates to be payable, the potential tax benefits of a LTD company BTL, could more than outweigh this. Either way, the limited company mortgage rates with a 25% deposit would still be better than a personal buy to let mortgage with a 15% deposit.
The Advantage FS Difference:
This case study demonstrates the value of a thorough and strategic approach to BTL financing. Advantage FS doesn’t just act on your initial request and process applications – they identify missed opportunities and explore various avenues to optimise the client’s investment strategies.
Moral of the Story:
Even after consulting with other brokers, our clients often still benefit from a fresh perspective. Advantage FS encourages potential BTL investors to seek comprehensive advice and explore all available options before making significant financial decisions.
Ready to Invest Confidently?
Advantage FS is committed to providing its clients with a comprehensive and strategic approach to BTL investment. Their team of experienced mortgage advisors is dedicated to exploring all avenues to ensure your investment journey is successful.
Contact Advantage FS today for a free consultation and take the first step towards owning your first home.
Tom Collier – Advising Director
DipFA CeMAP FSRE
Tom is our resident life insurance expert, he’s always been very enthusiastic about what is, let’s face it, a rather dull subject. In 2019 Tom assisted one of the UK’s top insurers in developing and launching a new life insurance product into the broker market. He’s previously worked for one of the UK’s largest insurers and most recently helped set up an insurance advice team for the consumer champion Which?.
Tom is a qualified financial planner with 10 years’ experience in the financial services industry, the majority of his career to date has been spent helping his clients with their mortgages. Tom is fully fledged petrolhead, you can usually find him tinkering on an engine somewhere in his spare time.
