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Remortgage for non-home-owning landlord with multiple income sources

Remortgage for non-home-owning landlord with multiple income sources

We were approached by a broker whose client was looking to refinance a 4-bed terraced house in London he had bought at auction with a bridging loan.

When purchased, the property was not habitable so did not qualify for a buy to let mortgage but now that it had been refurbished and let to tenants, the client was keen to refinance onto a cheaper, longer term rate.

The broker brought the deal to Keystone because:

  • The client has multiple income sources – from a salaried job and three SPVs which each hold two rental properties. The Classic Range lending criteria accepts multiple income sources as standard.

  • The client was looking to make the application using a newly established SPV limited company and needed a product with a generous Rent to Interest (RTI) calculation in order to achieve the required borrowing. Keystone accepts both SPV and trading companies. It also has a five year fixed rate product with a suitable RTI.

  • Despite being a landlord, the client doesn’t own his own home, instead he lives with family. Keystone will accept this situation on a case-by-case basis whereas many lenders require borrowers to own their home.

The underwriters were happy with the client’s circumstances and so surveyors were booked to value the property. Despite the refurbishment works, the valuation report found that the property still had both damp and timber problems.

A formal offer was extended to the client subject to a retention of funds which would only be released once the damp and timber problems had been rectified and signed off on re-inspection.

Here are the details:


Property value: £850,000

Loan amount: £600,000

LTV: 70%

Rate: 3.99% 5 year fixed

Term: 25 years, interest only

RTI: 125% @ 3.99%

Product: Classic Range

Borrower: SPV Ltd Co

Lender arrangement fee: 2% (£12,000)

Mortgage payment: £2,028 pcm

Rental income: £3,600 pcm

Gross yield: 5.08% pa

Broker proc fee: 0.6% (£3,600)


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