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Landlord with 100% rental income remortgages multi-unit to repay bridging loan

Landlord with 100% rental income remortgages multi-unit to repay bridging loan


We were approached by a broker looking to source finance for his client – a full-time landlord from Bristol with a small portfolio of rental properties.

The client had recently taken out a bridging loan to convert a Victorian terrace house into a 3-flat multi-unit.

With works now complete the client was keen to refinance onto a long-term facility, whilst also raising capital for future purchases.

The broker approached Keystone for the following reasons:

  1. The client has no income outside of rental income

  2. The client is looking to borrow via an SPV Ltd Co

Keystone’s underwriters asked for the client to provide full tax returns (SA100), which showed a healthy income that was well able to support interest payments on the requested loan. 

Having confirmed that the client represented a good prospect, we offered the following terms:

Property value: £480,000

Loan amount: £354,000

LTV: 74%

Rate: 4.29% 3 year fixed

Term: 25 years interest only

Product: Classic Range

Borrower: SPV Ltd Co

Lender arrangement fee: 2% (£7,080)      

Mortgage payment: £1,266 pcm

Rental income: £2,465 pcm

Gross yield: 6.16% pa

Broker proc fee: 0.6% (£2,124)


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