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:
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
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)