Newly self-employed applicant with minor adverse credit remortgages multi-let

The client – a self-employed landlord with a portfolio of five rental properties, contacted us looking to remortgage a two-bed rental flat, let on a multi-let basis.

The two-bed flat is on the ground floor of a converted Victorian town house in Manchester.

The initial term was coming to an end with the client’s current lender, so he wanted to remortgage before he reverted onto the lender’s standard rate.

There were a few challenges with placing this case:

  • The client had only recently declared himself self-employed, which meant he was unable to provide trading accounts for the last 12 months

  • The client had a default registered against him from a missed phone bill payment

We took the case to Keystone Property Finance who deemed the client a good risk and offered the following terms.

Property value: £230,000

Loan amount: £150,000

LTV: 65%

Rate: 4.79% 5 year fixed

Term: 12 years interest only

Lender arrangement fee: 2% (£3,000)

Mortgage payment: £598 pcm

Rental income: £795 pcm

Gross yield: 4% pa

Consultant: Julie Priest, 07734 137877