An experienced landlord with 15+ rental properties approached her broker looking to raise finance to expand her portfolio.
The client was looking to remortgage one of her rental properties – a two bed mews house in Bradford.
She was looking to achieve the highest loan amount possible, so she could put down deposits on a further two rental properties.
The broker approached Keystone because he knew that our Classic Range has products available up to 80% loan to value and we do not have an upper limit on the number of mortgaged properties a landlord can have in their portfolio.
The client, who had been advised by her accountant to make the purchase personally, chose a three year fixed rate. Here are the details of the case which went through without a hitch:
Property value: £95,000
Loan amount: £74,500
LTV: 78% (80% inclusive of arrangement fee)
Rate: 4.29% three year fixed rate
Term: 15 years interest only
RTI: 145% @ 5.5%
Lender arrangement fee: 2% (£1,490)
Mortgage payment: £270 pcm
Rental income: £500 pcm
Gross yield: 6.3% pa
Broker proc fee: 0.60% (£447)