We were approached by a broker whose client was looking to raise capital to expand his property portfolio.
The client is a full-time landlord who owns than 20 rental properties in and around London. He wanted to remortgage a licensed 5-bed HMO in North London which is situated right next to a small business park.
Having owned the property for 12 years, there was plenty of equity in it. In fact the property had increased in value by £1m since the client had purchased it!
The broker approached Keystone because our criteria allows:
The landlord wanted a five year fixed rate and opted to make a personal application. After careful assessment of both the property and the applicant, Keystone offered the following terms from the Classic Range. The remortgage went through without a hitch:
Property value: £1,350,000
Loan amount: £840,000
Rate: 4.19% 5 Year Fixed
Term: 20 years interest only
RTI calculation: 145% @ 4.19%
Borrower: Individual applicant
Mortgage payment: £2,933 pcm
Lender arrangement fee: 2% (£16,800)
Rental income: £4,575 pcm
Gross yield: 3.4 % pa
Broker proc fee: 0.6% (£5,040)