A broker called us looking for finance for his client who wanted to capital raise against an unencumbered multi-unit, currently tenanted to professionals. The client is a full-time landlord with a small property portfolio which generates a personal income of £14k per annum.
The property in question is a converted townhouse comprising of two self-contained flats.
The client wanted to raise just under £94k to repay his parents who had gifted him the property a year ago.
There were three main challenges with placing the case, which meant a specialist lender would need to be approached.
Keystone can deal with the more complex scenarios hence why the broker approached us. Happy with the client’s experience the following terms were offered.
Property value: £125,000
Loan amount: £93,750
Rate: 4.19% 5 year fixed
Term: 25 years interest only
Lender arrangement fee: 2% (£1,875)
Product: Classic Range
Borrower: Individual applicant
RTI: 145% @ 4.19%
Mortgage payment: £334 pcm
Rental income: £1,300 pcm
Gross yield: 8.5% pa