He was looking to buy a property for his parents to live in. The deposit is coming from his parents. The mortgage will be paid by Paul but his parents will oversee the bills. He wanted to go down the regulated BTL route meaning a rate of 3.15% variable for 2 years and payments would be £433pcm.
What We Did
I provided the solution of the second residential meaning his rate would be 2.06% fixed for 5 years, meaning his payments would be £384pcm.
The first bonus is his payments would fixed for 5 years so creates stability and the second is a saving of £2,940 over 5 years providing that variable rate never increased, again some risk!