Vida Flex is a great option for all BTL Landlords. Whether they’re first-timers, or professional landlords, Flex gives investment flexibility to landlords – they can sell or refinance after 3 years without charge, rather than wait 5 years. It has the added convenience of being able to stay with the same lender for the full 5 years or taking a retention product after 3 years, if eligible, to stay even longer.
Take a look at an example of where Flex might be used below:
CASE STUDY: MR & MRS HOWARD
Mr and Mrs Howard are owner-occupiers with no other properties.
Mr Howard has been a self-employed Sole Trader for 18 months and the first years Net Profit was £13,000, and Mrs Howard is employed on £19,000. Having had their first child 3 years ago, they are now wanting to buy a bigger house which is close to a couple of schools they would like to be in the catchment area for.
They are keen to retain their existing property for the time being, given the current climate, as it could give them some extra income by letting it out.
Not wanting to be tied in for 5 years in case they find being a landlord is not for them, they do want to maximise borrowing through using a 5 year pay rate for deposit purposes.
Having visited an Intermediary, Vida Flex was identified as a great option to support their plans to remortgage their existing property into a BTL and capital raise for a deposit on their new residential property. For borrowing purposes Vida will assess affordability using the pay rate, allowing them to borrow the required loan but also giving them the option to sell after 3 years if they decide and repay the loan without incurring any ERC’s.