A broker was approached by a self-employed consultant who also has a mixed portfolio of 13 residential and commercial investment properties.
The client has more than 15 years’ experience as a landlord and was looking for a buy to let mortgage to buy a six-bed detached house.
The broker approached Keystone with this case because:
Keystone underwrites applications manually and was able to verify all income sources. The client’s experience as a landlord stood him in good stead and the application proceeded without hitch.
The client opted for a five year rate to maximise the amount he could borrow personally. The following terms were offered:
Property value: £1,080,000
Loan amount: £600,000
Rate: 3.99% 5 Year Fixed from Classic Range
Term: 25 years interest only
RTI: 125% @ 3.99%
Lender arrangement fee: 2% (£12,000)
Mortgage payment: £1,995 pcm
Rental income: £3,000 pcm
Gross yield: 3.3% pa
Broker proc fee: 0.6% (£3,600)