Mark enquired about capital raising on a property that he currently lived in. Mark wanted to invest in further buy to let properties up north but didn’t have one in mind yet.
Mark wanted the cash in his bank before he found another property so he could have a quick cash purchase when he found one, or buy one at auction and have extra funds to do work on the property as quickly as possible. As his plans were not set in stone his lenders were limited. Most lenders operate a duty of care in knowing where the capital raised funds are going, and when they are for an onward property purchase they usually require simultaneous completion on the release of funds and the onward purchase. There are a few lenders who do not require this and have competitive rates. There was a good rental income on the property which helped get the loan amount we needed as the income affordability was tight so this could not have been used as a top up.
The lender I found calculates the loan amount solely on rental income and has no minimum salary requirements for the client. They also offer a competitive rate, ensuring that Mark still made a decent profit on his current rental property.
Currently, we have a few lenders who have scrapped the minimum income requirements for buy-to-let properties.