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Portfolio landlord remortgages 5-bed HMO to raise capital

Portfolio landlord remortgages 5-bed HMO to raise capital

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:

  1. HMOs with up to 8 bedrooms (both licensed and non-licensable)

  2. Properties which adjoin some types of commercial premises

  3. Full-time landlords, i.e. landlords whose sole source of income is from rent

  4. High-value, low-yielding properties


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

LTV: 62%

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)

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