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Landlord in his 60s refinances multi-unit on interest only terms

Landlord in his 60s refinances multi-unit on interest only terms

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:

  1. The client is in his mid-sixties and requesting interest only terms

  2. The client’s income is solely derived from rent

  3. Deemed as a more complex property type multi-units aren’t accepted by all lenders

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

LTV: 75%

Rate: 4.19% 5 year fixed

Term21 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)


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