We were approached by a broker whose client – an IT consultant from Blackpool was looking to purchase his first buy to let property.
The property in question is a converted town house comprising of three flats all held on one title.
The client’s broker approached Keystone for the following reasons:
Keystone deemed the client a good risk and offered a five year fixed rate on the following terms.
Property value: £130,000
Loan amount: £97,500
Rate: 4.19% 5 Year Fixed
Term: 20 years interest only
Borrower: SPV Limited Company
Lender arrangement fee: 2% (£1,950)
Rental income: £1,343 pcm
Mortgage payment: £340 pcm
Gross yield: 12.4% pa
Broker proc fee: 0.6% (£582)