Summary: A broker approached us looking to place a case for his client - a full-time landlord earning less than £25k pa.
The client had recently completed the build of a five-bed detached house in Wiltshire. Having finished the works, she was now looking to refinance the property onto a buy to let mortgage.
The capital raised from the refinance would be used to repay the development loan and the client’s outstanding credit card balance.
✔ No minimum income
Many lenders impose a minimum of £25k pa
✔ Rent as income
Some lenders prefer landlords to earn income in addition to the rent
✔ New builds
Not all lenders will lend on new build properties
✔ SPV Ltd companies
Keystone’s rates are priced the same whether borrowing is made personally, via an SPV or via a trading limited company
Broker proc fee: £3,045 (0.7% of loan amount)
Property value: £800,000
Loan amount: £435,000
Rate: 3.44% 3 Year Fixed
Term: 15 years, interest only
RTI calculation: 125% @ 5.50%
Lender arrangement fee: 2% of loan amount (£8,700)