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Buy to let mortgage for portfolio landlord with small income from multiple sources

Buy to let mortgage for portfolio landlord with small income from multiple sources

A broker was approached by a self-employed consultant who also has a mixed portfolio of 13 residential and commercial investment properties.

The client has more than 15 years’ experience as a landlord and was looking for a buy to let mortgage to buy a six-bed detached house.

The broker approached Keystone with this case because:

  1. Some mainstream lenders will not accept landlords with large portfolios. Keystone doesn’t impose a limit on the number of properties a landlord owns.

  2. The client has income from a variety of sources – from his consultancy business and from the various rents. Despite this, his actual annual earnings are relatively low. Many mainstream lenders won’t consider applications from landlords with income less than £25k pa or from multiple sources.

  3. The client will be letting the property to a housing association. Many lenders stick with tenants on standard ASTs – they won’t consider corporate or housing association lets.

Keystone underwrites applications manually and was able to verify all income sources. The client’s experience as a landlord stood him in good stead and the application proceeded without hitch.

The client opted for a five year rate to maximise the amount he could borrow personally. The following terms were offered:

Property value: £1,080,000 

Loan amount: £600,000

LTV: 56%

Rate: 3.99% 5 Year Fixed from Classic Range

Term: 25 years interest only

RTI: 145% @ 3.99%

Borrower: Individual

Lender arrangement fee: 2% (£12,000)

Mortgage payment: £1,995 pcm

Rental income: £3,000 pcm

Gross yield: 3.3% pa

Broker proc fee: 0.6% (£3,600)

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