A professional landlord in his 60s was looking to refinance one of his rental properties – a multi-unit consisting of two flats in Plymouth.
He planned to use the capital raised to pay off his residential mortgage.
There were numerous factors with this case, which meant borrowing options would be restricted for the client, which is why the broker approached Keystone for help:
Fortunately, Keystone could help. The Classic Range does not impose any minimum income requirements and has interest only terms for individual borrowers up to 85 years at the end of the loan term.
Added to this Keystone will accept multi-unit properties with up to 10 flats in the block. Here are the details of the product offered:
Property value: £165,000
Loan amount: £123,750
Rate: 4.19% 5 year fixed
Term: 21 years interest only
Borrower: Individual applicant
RTI calculation: 145% @ 4.19%
Mortgage payment: £439 pcm
Lender arrangement fee: 2% (£2,475) added to the loan
Rental income: £945 pcm
Gross yield: 6.9% pa
Broker proc fee: 0.6% (£743)