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Trading Ltd Co refinances new build flat within 6 months of purchase

Trading Ltd Co refinances new build flat within 6 months of purchase

We were approached by a broker whose client, a portfolio landlord and director of a project management company, was looking to raise finance against one of his investment properties.

The property in question is an unencumbered 2-bed flat within a newly built, eight-storey block in Salford which the client had purchased five months previously via the limited company through which he operates his project management business.

The company’s trading accounts had suffered in the past few months due to an unexpected expense, so the broker needed to find a lender which would take a common-sense approach to underwriting.

The broker approached Keystone for the following reasons:

  1. Keystone offers the same rates to trading limited companies as it does to SPVs and personal borrowers

  2. Keystone accepts remortgages within six months of purchase

  3. Keystone manually underwrites all cases

After examining the client’s business accounts and property portfolio, the Keystone underwriters agreed that the recent business accounts could be overlooked and, because the property and entire portfolio generates a good level of income, offered the following terms:

Property value: £175,000

Loan amount: £131,250

LTV: 75%

Rate: 3.99% 5 year fixed rate - from the Classic Range

Term: 25 years, interest only


RTI: 125% @ 3.99%s


Borrower: trading Ltd company

Mortgage payment: £443.60 pcm

Lender arrangement fee: 2% added to the loan (£2,625)

Rental income: £950 pcm

Gross yield: 6.5% pa

Broker proc fee: 0.6% (£788)


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